If it's in a high tax /flood area taxes and insurance could easily be 5-6k or half that then with title insurance points and closing it could make senseWhat is the breakdown ?

Insurance and LiabilityWhat type of insurance is required for a renovation project in Chicago?

If was originated as owner occupied in the past and no longer is owner, if you have change of name on deed or insurance, if impound had a dispute, claims - are a couple reasons why the servicing changes.

Insurance is expensive, there is a lot of extra maintenance like painting or electric in common areas that don't apply as much with smaller units. 

Also, can you say more about landlord vs renter’s policy on insurance ?

Florida is a unique state for MHP law and the insurance has gotten very expensive there too.I recommend checking out @Frank Rolfe's mobile home university content if you haven't already.

It's not your fault that the tenant has to vacate, so the tenant should have insurance to protect them against any additional expenses.

Affordability is no more that $4500 per month  morthage/taxes insurance. 

. - some strategies I've seen California investors use to lessen negative cash flow: house hacking, mid-term rentals (people temporarily displaced from home renovation or insurance reasons like fire), rent by the room, Short Term Rentals. - The ultimate house hack, live in the small ADU unit and rent out the two levels of the main house on AirBnb in San Francisco (I would have thought STRs are oversaturated in S.F. but it worked for them and they stay fully booked).

I look for cashflow to service the debt, repairs, cap ex, taxes, and insurance while the equity grows, my taxes are decreased, and rents are increased to make more cashflow.