Most don't use them all; some fill them themselves with their preferred coffee or tea.  

Fake income documents are easily purchased online, and inexperienced screeners often miss red flags.

If youre asking why the loan amount is only $220k and you have to bring $120k in a downpayment, then the lender is likely being conservative due to the variables of the deal (or maybe this is an inexperienced lender).The loan amount is 67% of the purchase price.

They are based on selling to inexperienced buyers. 

May not be your cup of tea but they are cost efficient and they work to add passive income at a fraction of the cost to build a SFH.There are a few "Tiny Home" builders in Tampa and Manatee doing a ton of business.  

My name is Jaedon Carlisle.I am a new investor looking for 4-plexes and small commerical units.I currently reside in Redding as well and I would be very interested in meetups or any existing groups.As mentioned above, I have noticed very little inventory and the inventory that exists seems to be very expesnive relative to what I believe constitutes a good deal (at least in my inexperienced view).I am 26 and looking to make this my career.

Ouch... sounds like you may have gotten involved with an inexperienced PMC.

If get somebody inexperienced at a discount, you are taking a chance. 

Working with inexperienced teams. 

If both have co-signers, that tenant is the same risk simply being a more inexperienced tenant.