@Harry ZhouAsset protection is the only incentive in my case.As for taxes, CA will collect income tax for sure.

@Theresa Harris @Andrew Syrios @Jonathan Oh Thank you all so much for your response.

For conservatives, it privatizes a vital government function in a way that even small business people can compete;For liberals, it allows you to personally implement and ensure the survival of a critical social program;The charitable, get to provide affordable housing;The opportunists, get a slice of government pie!

@Charles Willie Harris Will do!  

The VA home loan is one of the greatest entitlements for servicemembers, veterans, and eligible surviving spouses.

If the HOA was not named, and I've seen that happen on many occasions, your interest should survive the foreclosure of the 1st. 

Quote from @Theresa Harris: How much will the renos cost and what is the after reno value?

Quote from @Theresa Harris: I've seen cases where if there was an actual leak, the utility company gave the owners a break on the water bill once the leak was fixed. 

If you can survive the worst case, are happy with the realistic case, and ecstatic with the best case, then you go forward.

I never expected to have these feelings because my last deal was a full gut rehab, and I survived that.