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?

Originally posted by Christian Austin:...

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.

Then there are the traditional barriers I faced when I decided to close, inadequate revenue, stiff competition, people losing interest in going out to the movies, etc.If anyone is interested in using the theater for any other feasible purpose, I'd be glad to hear it.

He needs self directed account.This type of account could allow him to use his retirement funds for investing into non-traditional assets such as real estate, notes, etc.