I would also check with the credit reporting agencies to see exactly who pulled the credit report and I would speak to the lender to see what  your mom put on the application.

Are you getting showings, but no applications?

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

So, few days ago, I received a notice that the application is denied.

When you apply for conventional financing on the next property, one of the questions you will be asked is, "Are there any debt obligations that you are responsible for that are not disclosed in this application?"

The Howey test is still somewhat applicable for determining if the sale of a business interest is a security or a business opportunity .  

Talking about it not working in some applications.

I am working on applications for 3 college students. 

To qualify, the income from the property will need to be equal to or greater than the monthly principal, interest, taxes, insurance and HOA (where applicable).

Anything that is almost guaranteed to be used daily in your rentals (i.e. couches, bed, chairs), I'd try to invest in as much quality as you can for those specific items.Some store sites will let you filter for "contract grade" or "commercial grade" items - these are the sorts of furnishing that get put into higher-use commercial applications such as hotel lobbies, apartment building amenity spaces, etc.