I'd expect that your costs there would rise to upwards of 15-20%, service calls, application costs, lease out costs.

No, I'm guessing you don't, I don't know either, I just know there is a difference for different applications.

Applications, phone interviews, four different test videos, etc.

He emailed me stating that he needs it for his loan application

I made students fill out an application that takes them about 2 hours. 

If not, then Jon's concerns as to investment property are applicable, it can go commercial, but;These are usually underwritten as a refinance closed as a purchase.Mom being in title for 7 years certainly seasons the ownership for a refi.

Yes you have to include 20% of your offer and you must include a $150 application fee that gets put toward your balance.

I found it was actually cheaper to use the lease my attorney recommended than to have them review the one I came up with to include all of the applicable state mandated stuff...you may want to just make a call and ask if they have a lease they recommend and how much it is.

I run the credit on my tenant applicants, and they don't even owe me money or live in my property yet.

If the investor's position is to merely to be a lender, securing their loan/note with a mortgage (or deed of trust, as applicable) makes sense.