I would pay him back since all I brought was regular check book.

I don't plan on living in it.1) Can I get a regular residential mortage on it (with normal rates and down payment), or do I have to get an investment type mortgage?

There are two vibrant REIA groups that meet regularly.

This may result in the tenant having to leave however with no back ground information on the tenant you are safer finding your own tenant than keeping one you may have issues with starting out.Keep in mind finding/replacing tenants is simply part of the responsibilities landlords deal with on a regular bases in the operation of their business.

I would pay him back since all I brought was regular check book.

To know your equity you must know your market, often it is a educated guess as you will see on the forums people regularly posting ARV. 

At times an investor will see your hunger and that you are attending regularly and will inquire of your goals and will initiate.

I've known these folks for many years  and they regularly hear about my side real estate investments - a handful of single family homes, minor renovations, hold and rent.

Track your income and expenses in report form and review them regularly with people you trust and understand know your goals.  

I have no doubt tenants will do this on a regular basis and that there will be regular issues with the laundry units.