Short Answer is yes, via interest tracing rules. 

Things like the 1% rule right off the bat, especially with properties that I know are undervalued, are good indicators of a "good deal."  

.: Some of the advice above is not well thought out or not aware of the rules in CA.  

My biggest rule it to pay off the heloc as soon as possible because the rate is variable and its much safer to be in a locked in mortgage.

Are you comfortable analyzing ARVs, purchase price, 70% rule, rehab costs, holding costs, etc

One other thing, if SCI is so willing to buy MHP's and be the owners of them, why that every piece of paper we get (rules / regulation, leases, notices of rent increases, etc) do not have one ounce of SCI's name or signature from anyone at Sunrise Capital Investors.

Just do your homework (I need to do this way better) and remember most successful investors aim for the 1% and at least 80% rule ARV... if you don't see this in the deal, they agreed to buy it too high or they are making too much profit.

Consider the "2 of the last 5 year rule" to avoid capital gains. 

.- Tenant Accountability: Many programs have strict guidelines for tenants, and breaking those rules (e.g., property damage) could jeopardize their assistance, encouraging them to be responsible.- Inspections: Some programs require annual property inspections to ensure compliance with their standards, which can occasionally be demanding.- Damage Risk: As with any tenant, there’s potential for property damage.

A lot of people get themselves in trouble by acting as a conduit to mild fraud or just general deceit within the rules..Hmmm, he is bragging all over Youtube how he is making $150,000 from one guy's equity, on one transaction, by bailing him out of foreclosure.