That does look like it could be the sheet of underlayment that is high and the door has scraped away at it - check the bottom of the door - it will have matching wear marks.If that's not it, then perhaps it was a chemical conflict... certain vinyl and rubber can often be incompatible when moisture is introduced.  

There is a group of investors that meet on a regular basis in Murrieta that I am affiliated with.

I follow the 70% rule, I analyze properties on a regular basis and feel comfortable pulling comps for the areas I focus on.

Lian Shi - if you do a search here on Wendall deGuzman, playing around with HUD and various keywords, you should find information from one who does this regularly about how to wholesale a HUD home.  

Regular income tax applies.2) The specifics of tax amelioration are dependent on your circumstances, but sole proprietor is generally the weakest and worst position to be in from a legal standpoint and from a tax standpoint.

Under funded Reserves mean that when major items do require attention they either don't get it (parking lot that should have been re-paved 5 years ago but wasn't because there is simply no money to do it), or, hefty "special assessments" are levied that all owners will be required to pay in addition to their regular HOA fees.

My ultimate goal would be to quit my regular job/cut down to 3 days a week and support myself through rental cash flow.

I'm trying to prepare up front for the actual details of the process.As in do I make an offer as a regular bidder?

Either way, it wouldn't happen within a year, so I assume I'm not breaking any of the clear HUD rules on this one.My question is - if I end up taking my good old time and repair / remodel this place over the course of a year or more and I'm over there regularly to cut the grass, get the mail, work on it, etc.  

My wife and I wanted to do it to a) try to pay down student loans some, and b) save more money for a down payment and cash reserves than we would have been able to with a regular full time job.