If the PCR (Property Condition Report) identifies the property as IE (Insurable with Escrow) the, yes, a lender may allow you to fund an escrow account at closing.

Does anybody know if my father can prove his income to a lender when I try applying for an FHA loan instead of my income? 

I have investigated several out of state markets and have not found anything that I like better than what I am investing in now when comparing overall income, expenses, and the potential for appreciation.

If so, would this allow me to deduct rental expenses below the amount of your rental income?

I'd then repeat this process every 12-18 months until I had a reason to stop.Concurrently I'd be trying to increase my W-2, or 1099, income as much as possible, as soon as possible.

The typical path to a million in net worth is to go to college, save money (frugal with expenses), buy a house, and invest in tax deferred accounts. 

I think Underwriting requested gross income to better assess "loss of rental income".

A tenant who wants to stay and is on a fixed income is likely to stay a long time which means you won't have excess loss to vacancy/turnover.

There is zero proof that card systems work better, generate more income or make life any easier.

You could also take a look at a DSCR loan, it doesn't even take into account your income at all!