Otherwise, you could use a DSCR financing that doesn't look at income/tax returns. 

We would have a positive cash flow of 150-200$ after property taxes and property management fee.

I am very new to Tax deed investing in the CA US.

The other thing to consider is the tax implications.

The other part of the is the tax implication when computing ROI.  

Nevada is a landlord friendly state, 4th lowest property taxes, no state income tax, limited housing supply with tech and manufacturing jobs moving to the area from CA.

This provides me some legal protection as well as tax benefits.It depends on the person, most small time investors should just put in their personal name as long as they qualify for conventional financing. 

Or would it still be capital gains tax because it is proceeds from that property?

I have also sent personal hand written letters to people who are listed on the tax records of properties that are vacant.

In the other two, it's new to seller but they are open to the idea.As far as the sellers, one is an experienced investor who wants out but isn't ready for capital gain tax.