That stated, many of these folks are relatively young albeit very successful investors who've done very well in RE during the past decade or should I say since the '08 meltdown that actually started in '05 to be real.

I've got relatives in and around Wichita so I'm familiar.  

Should we agree to split any costs related to the closing process?  

I'm relatively new here so I'm not entirely sure, but how would Fannie Mae know your offer you presented for your client came from an investor?

Most of the information I found online for private money lending is related to lending the full amount for the house/renovation.

There's a few other considerations regarding how the baseboard, door jambs and cabinets relate to the existing floor but if the surface of the concrete is not acceptable, you might want to consider tile.  

Do I need to do something tax related with this $350 or not?  

MLS Properties are receiving top dollar, if they are relatively new, to the market because banks are willing to sit on them, to create Bidding Wars.

Vacancy is typically related to community economics, the property class-{a,b,c,d} and how well you market & manage the existing tenants.

(I mean lenders not relatives).Also is it ever reasonable for a lender to ask for a $500 application fee?