We’ve provided a toothbrush. 3 years later and it’s still going strong! 

As others mentioned, you're going to have a very hard time getting a loan when you're currently in default on any kind of mortgage, HML or otherwise.

Pretty sure her daughter was running a program buying there.

If that 1% saves you $7500-ish (or whatever the final costs are for the refi), then it may be a good idea.

The median price of a home in Los Angeles is now around $1 million.

If you are a new landlord, your biggest problem may be your inability to set boundaries.

Are you looking for a lender contact on this, or wondering how to structure the business? 

You will likely need to sit on the unit for a long time or reduce initial rent below the market for that unit to rent during the Winter. account for this by either offering a Winter special that will increase to market in the Spring or doing a short lease that ends in the Summer.

Quote from @Daryn Gardner: I recently purchased a tax deed property.

I work out of my basement and have been trying to find a location near me that rents out individual offices.