This will cost more interest but may prevent you from scrambling to save your personal residence if the HELOC gets frozen or called due.

That is done to prevent a lot of non-serious buyers from traipsing through the unit and disturbing the tenants.

If the agent or the owner is suggesting buyers need cash or 203(k), that means there's a problem and the seller isn't looking to fix it themselves.When a property needs repairs, some items will prevent you from getting certain types of financing (VA, FHA).

Notarization of the note and/or modification agreement is irrelevant and unnecessary since these do not get recorded.Jeff S. – Private Lender in Los Angeles

Such supplier may charge a fee not to exceed $10.00 to provide the requested information. (4) The failure of the public or private water supplier to provide such statement within such ten business day period shall: (A) Cause any lien for unpaid charges provided by this Code section to be extinguished and to be of no force or effect as to the title acquired by the purchaser or lender, if any, and their respective successors and assigns in the transaction contemplated in connection with such request; and (B) Prevent the public or private water supplier from denying water services to the new real property owner or tenant. (5) The information specified in the public or private water supplier's statement shall be binding upon the public or private water supplier as of the date of the statement and for 30 days thereafter.

BPs forum prevents the sharing of contact information so you'll have to look them up on the internet I guess.  

I can not think of anything that would prevent this, but my spidey sense is tingling a little bit on this one.  

Also California homestead real estate law does not prevent the involuntary (“forced”) sale of a home by a creditor when the property can be sold for an amount that would satisfy all prior liens and the California homestead real estate law exemption amount.

Do you, should you, prevent your credit score from tanking?

While you may live in the first one before you sell it, they have these parameters to prevent exactly what you are planning....FHA is designed for people who actually intend to live in them long term.