From what I have read, banks would not loan to new LLC's without proof of income.Furthermore, I have inquired for a lawyer's assistance with LLC formation and he quoted me $2000 to $2,500 for professional fees.  

Does anyone know a bank or lending institution that would lend based on a properties income as opposed to personal income?

If he doesn't have regular paystubs, you can still request proof of income such as bank statements or tax returns.

No one will be able to explain it in this thread more clearly than it has already been explained many times in blogs and podcasts on this site and elsewhere. 

You just have to find a bank or lender that participates. 

I found it myself on Redfin and gave a low ball offer, the bank countered a little higher and we accepted.

Make sure to explain to them that there is always the option to list the property "as-is" with a Realtor, with "no repairs or reports to seller". 

Which probably explains why I never get the same results the seller advertises!

Just a letter from your bank saying you have XX amount of funds available works. 

If it is what the seller is paying, it’s an indication of what you might be able to get, but I would not assume it’s what you’ll end up paying.A few things to check when doing due diligence on the insurance.....Cutting back the insurance coverage prior to the sale is a strategy to give assets a higher return.The seller may be able to insure the building for what they paid for it 10 years ago, say $100,000, and now you need to insure $200,000 to satisfy the bank loan.