You can get accused of discrimination, but all you really need is a set of pre-written screening criteria and also questions you ask every potential applicant. 

House 2 is with Provident, I "switched" my mortgage application from house 1 to house 2 with them.

It's also way easier to pick a good tenant when your have 20 applicants.6. 

However, it's not the wild west, business transactions are covered under federal laws, the Uniform Commercial Code (UCC), Security Exchange Commission (SEC) are usually the most applicable to real estate investors but there are various federal rules, regulations and laws that may apply. 

The tenant would still be responsible for paying rent until the end of the lease term, or until a new lease begins, whichever occurs first.Each state is different when it comes to the law so you should review the applicable landlord/tenant act and consult with an attorney if you are still unclear on how to proceed.

Come companies can open your account same day (online) and others process and manual application and require copies of your ID.

Regarding your second question about transferring title later, you will need Lender consent to do it, which they may or may not give, and you will incur various recording and transfer taxes, if applicable in your state. 

Often they have their applications and rental criteria listed - a great starting point.  

@David Begley   if the CF wants hard money rates they will have a hard time with these underwriting critera vis a vi rates and terms... these would be akin to A paper or bank deals and as such 1 point and 6% is what I would expect to pay or less.In Oregon if we can get 90% of cost for new construction  including land and improvements. 1 point 5 to 6%  and of course a PG

Rent rates were climbing, applicant quality was rising and, oh, it still is!