Not a lawyer or tax person or anything. 

As the new owner, showing them that you care about both the property and their experience as residents while they're living there, and building a solid rapport with them on the front end, it will pay so many dividends as you move forward.Hope this info helps a bit, and best of luck with the new property/tenants!

Should we be doing this HELOC if we are unable to pay it back in full at a later date. 

(If so they will require you to submit forms every year until you sell so they can collect their state income tax on top of any state income tax where you buy.)

You can find a VA or a younger person to pay.

But classifying your depreciation (either the leftover annual depreciation after taking bonus depreciation, or the regular amount of depreciation if you didn't take bonus depreciation) can be taken as an active deduction against your W2 income for as long as you materially participate in the property.Disclaimer: I'm not a tax professional so not financial advice. 

(On that type of deal it should but play it safe)Even if the seller can show you a current policy and that is what they are paying now you as the new owner may not be able to secure that same rate even from the same insurance carrier.

I would rather pay a little more now to build a foundational system for growth. 

You will be taxed $800 a year by California just for having that LLC. 

Keep in mind, the accountant who files your taxes may not be the same accountant who advises you on wealth building strategies & thats OK.