That could certainly be traditional basic key locks, key locks with a master key through a service like LandlordLocks.com, Schlage SmartKey system, or even the more basic, non-smart lock variations that most of the major lock companies offer as a parallel to their full Z-wave/Zigbee variants, often at 1/2 the cost. 

It would have an ARV of around 1.2MM and other homes are in that range but are all traditional construction.  

That settlement fee can go up if a traditional or hard money lender is used, but it is based on the amount of paperwork the particular lender requires. 

You don't have to have a long term lease in this case but the amount you can borrower is based on the 1007 income of the property if it was rented as a traditional rental. 

The two, one families have traditional mortgages.

If the house is not built up to flood plain codes any end buyer using traditional financing could be on the hook for flood insurance costs in the $9,000-$10,000 range.From what you described has been done, I believe you would have to raise the structure the 2-3' necessary to get it out of the flood plain.

I'm looking into creating a real estate company that makes home ownership affordable and simple for individuals in Detroit, Michigan who may not qualify for a traditional mortgage- or who THINK they may not qualify and the renter who has been renting for 3 years for $650 and is ready to own a home.

Do you have any friends/family that can help you get a traditional loan?

As you mentioned, one of the pros would be saving on recording/closing costs, transfer taxes and perhaps real estate commission as well.However, if the buying investor needed to finance the purchase through a lender, would buying the LLC as opposed to buying the property in a traditional sense cause any problems?

My understanding is that a traditional 'Bank Non Recourse' loan would be to the LLC that hold the property and would therefor be in a position to foreclose if needed in order to secure their equity.