Even a small error could affect how much you qualify for.I strongly feel here is that we need to work with a lender that will use the potential rental income from your property AND use the maximum DTI that Fannie allows. 

In my mind, I knew I was going to spend that money in trial and error over a period of 6-9 months, so I rather wanted to shorten that timeframe and bite the bullet.

Check out numerous operators and you will have your answers. 

I have posted a few properties and have received numerous leads.

Especially, these low cap rates don't  give you any margin for errors, if you don't want to lose your money.Also, what's your exit strategy? 

If you go this route I recommend you google "introductory HELOC Los Angeles" and there will be numerous banks and credit unions that will have an introductory offer of 2.99 or 3.99%.My recommendation is to reach out to a mortgage lender both here in Southern California and out of state (depending on where you want to invest) and determine how much you'll qualify for based on your current numbers.While it will be a process to get everything figured out the key is to take action. 

@Grant Rothenburger to be honest I'm not sure as there are a few established companies such as; Realty Mogul, PeerStreet and Fundrise that will most likely endure, however, there are other smaller companies that have either recently gotten into the space or are trying to get into the space and just won't make it based on today's margins.Don't get me wrong I think the real estate crowdfunding space will stick around and numerous companies will come out successful, however, the companies that are full of generalizations, estimations and marketing will close fairly quickly.Since I have very limited investments in this space I'm not sure which ones will consolidate and which ones will close in the near future.FYI, I have no affiliation with Realty Mogul, PeerStreet or Fundrise.

Creating numerous LLC's for a growing portfolio will eat up much of your margins at a minimum 800 dollar annual filing fee per LLC. 

No one formula works because each situation is unique.For example, the value will be determined by these variables, as well as numerous others : likelihood that note can be made re performing, amount of time in default, owner occupied or not, stage of foreclosure, foreclosure laws of the state property is located in, if the debtor has filed bankruptcy, financial condition of debtor, whether or not there are any guarantors, type of area the property is located in, equity in the property, balance of the note, interest rate of note, default rate of interest, communications with borrower, residential or commercial, if residential was the note in compliance with Dodd Frank, did it pre date Dodd Frank, or was it an exempt note, note documentation, chain of title, availability of original documents, robo signed or individual signed, title insurance.

You might also need error & omission insurance for the HOA.