It has to be realllllly, reallllly thin. I mean just dip the tip of the paintbrush in white, then at least 10 drops of thinner to the cup (I'll use mostly X20A.. but I usually mix in some water, some wetting agent, and also some clear flat).
Here's a Z scale GP30 I just faded today:
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This took at least 10 passes with the airbrush, with a very thin (1/8"-1/4") pattern). And remember this is Z, so about 1/3 smaller than N. It still needs some washes, chalks on the roof for soot, and touch-ups.