Might be an additional cost there.If units are updated, capex items look good, leases and tenants look solid, and there are no other regular expenses besides the 5200 in insurance/property taxes then I like this deal.  

@Brandon MorganAn LLC will not reduce your taxes.

you can utilize a skip tracing company to get contact information for the owners.

Does this strategy utilizing HELOC really work on saving money and paying off mortgages much quicker?  

@Armell MayersBigger Pockets is a great place to find a real estate tax accountant.

Use that loan to pay the back taxes and get things under control.

I'm a local real estate broker, investor, and manager (100+ rentals, mostly Airbnb/STR and multifamily).House hacking is a tried-and-true method and in Sacramento you can produce some meaningful income while enjoying the appreciation and tax benefits of owning real estate.

A common mistake in my area is to ignore Hotel Occupancy Tax.

Finally, check with the Town to make sure there are no municipal liens, Make sure they're on Town sewer, check with the tax assessor to see how many bedrooms the tax office thinks there are, (important if you are flipping) buy ok to have more bedrooms if you are planning to buy and hold.  

It is how it is recognized, taxed and falls heavy on the VOE.