The calculation takes more than just Rent and PITI - they consider other expenses like vacancies, management fees, utilities, and more especially for full-doc programs.

The area between Los Feliz and Silverlake is very trendy and should only become more expensive over time.

One low interest easy to get loan. 

Difficult and low probability at the auctions!!!!   

There's a couple of things that make this more attractive than the other option sugggested of forming a new LLC to own the property.First is the expense and reporting involved in another LLC entity.Second though and more important in my book is that by having your LLC own a TIC interest and having your partners LLC own a TIC interest you keep the utmost flexibility available to you as you move forward with that property to eventual sale and possible 1031 exchange.  

We are charging $1700/month but the property performs within -$100-200 with all the expenses depending on the month.

And once you factor in interest, you are losing money since the interest alone is more than you’d get in rent once you deduct approx 50% expenses. 

How much they can bill is slightly subjective, but the most common lifespan for carpets I hear is 5 years, with some saying as low as 3.

There's a remote chance that the person who can't afford their payment can somehow afford to relocate the mobile home, but that's a VERY remote chance, offset in part by the higher interest rate, and in part by the surplus revenue received from the low vacancy produced in the park itself. 

It will also use 75% of the rental income of the subject property as long as you have a current housing expense.