In essence, let your renters pay for the repairs, not your equity.  

See the Zillow link for the property below; interior is only 2,000 sq. ft not 2,556 (2,556 includes the garage)https://www.zillow.com/homedetails/600-N-13th-Ave-...Work for this house would include turning it into a 3/3 while leaving the existing 2 car garage, 3 brand new bathrooms, remove the wall separating the kitchen from family room, refinish and/or replace kitchen cabinets (countertops will be reused), replace all exterior doors and windows with new impact glass, new HVAC system with duct work, minor electrical (high hats, new fixtures, inspection repairs), paint, new casing/baseboard, and maybe new interior doors. 

One technique for finding deals that intrigues me is looking up NODs (Notices of Default) in the public records and then reaching out to the property owners (probably via postal mail) to see if they are interested in selling.It seems like there's a decent chance to find a highly motivated seller and perhaps a very good deal using this method.I am wondering if anyone in the forums has used (or attempted) this technique, and if so, what sort of results you've seen.

The crap repairs post earthquake plus the lack of restoration make it high risk.

Many mobile homes have land lease fees that can cost several hundred dollars per month or more, if you buy a home that needs major work where will you get the money for the repairs? 

It's your responsibility to make necessary repairs. 

It seems to me like the HELOC would be better for short term usage, such as repairs on properties, or flips, but less optimal than a traditional mortgage for long term buy and holds. 

Diego Martinez what are the properties worth is perfect condition (ARV) and what are the repairs?

I have been on the buyer end of things for an FHA loan and it almost fell apart because of repairs that had to be made to meet FHA standards which wouldn't have been an issue if it was  conventional loan. 

You've networked with the right people and learned some advanced techniques for investing in real estate in one of the hottest markets in the country.