You can 100% charge "Pet Rent" - cats in particular can be super destructive to homes if they start peeing outside the box and on the floor, you'll have to replace subflooring when they go.

Or is this more accurate: (or do I soul have this wrong)He used 52000 from a private loan, but paid 2K in closing then refinanced to get rid of that private loan and is now on a conventional loan.Why did we assume 5.5 percent?

Heck, payment processors alone charge 2.5%!  

well If you can find deals like that I will fund 100% all day long and only charge you 2k  :) 

I sent those in and asked for letters on USDA, FHA, and verious amounts down for a conventional loan, and moved forward with the first three to get me what’s I needed.

I run into this about once a month with clients.This is usually how it goes,I tell the client it will cost $20k for the property if it was updated, but $30k-$35k with those panels.Buyer goes back to the seller and states they need to renegotiate.Seller doesn't believe and says "talk to my insurance company as they are charging less than that"Buyer calls sellers insurance agent and the agent states "yeah, this is a grandfathered policy and we if have to issue a new policy for a new owner, it will be about $35k"Seller then either cancels deal or negotiates down.As @Matt Popilek states, if the seller has multiple options, it will be more challenging to get them to adjust down.Good luck with it.

The closing attorney charges a fee to put it  in escrow, would I be able to ask for a cashier's check from the seller?

It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees.

What if his wife got pregnant would you charge a baby deposit lol be happy you have a good paying tenant friend and if there is a rate increase do it at the end of the lease when it needs renewed

It can also give you some time to build up more capital and you can plan for a balloon payment in 5-10 years where you'd be refinancing with a bank via a conventional loan.