Depending on speed of drives, drive connection, and complexity of edit as far as layers and effects go, you can certainly edit the AMA linked files directly. H.264 is not the most edit friendly codec, combined with the QT decode of AMA linked file, playback performance may be an issue. If it is not, then by all means, edit away and then save the transcode for delivery of just the sequence when done.
If you do need to render something while editing AMA links, make sure you set your codec and resolution in the settings tab of the project window to at least 115 to maintain quality.
If it were a longer project with lots of footage, the alternative would be to transcode to DNxHD 36 first, for offline editing, then relink back to the camera originals for final transcode/finish/delivery.
Michael