If you discover other issues upon interior inspection, or professional inspection, then negotiate from there.

@Nelson Lin 80/20 is considered institutional and is a decent split.

I've just taught myself how to make institutional grade proformas for multi units on excel, but now it's really trying to understand all the metrics and how to apply them properly.

Step.1 I located a market I wanted to invest in which happened to be Memphis ,TN due to a number of reasons then I narrowed down to about 4 zip codes I wanted to invest in.Step.2 I made a list using Propstream (No I am not an affiliate just like the service ) Search Criteria-Targeted 5+ unit Property owners -Property Owners that owned for 10+ years or longer -That had at least 50% equity Step .3 Once I compiled my list I came up with around 169 property owners that met my basic criteriaUsing Batch Skip Tracking I tracked down around 60% of the numbers to these potential sellers and started to cold call each one (NO RINGLESS VOICEMAILS ) by the third phone call I met a gentleman named Matt who stated he is a builder owned a number of properties all over memphis and two other markets and was interested in selling a 33 Unit apartment complex in Memphis TN.Step 4 (Build Report ) After Speaking with Matt I discovered he is willing to sell a 33 unit complex in the Berclair 38108 area of Memphis using a 1031 Tax Deferred exchange account now the seller isn't the most motivated seller he is literally holding on to the property for a tax write off but would be willing to sell to use the capital to buy another larger property.

I was wondering if local investors in the metro Detroit area could share any names of local financial institutions that are easier to work with when it comes to changing ownership of a SFH or multi-family home building from Joint Ownership (husband and wife) to LLC (same husband and wife own the LLC).

You need safety to mitigate risk and some local institution to attract quality tenants and have a house worth selling one day. 

In that case, you would use private money as a short term bridge to permanent institutional financing. 

Exactly what we discovered.

Most medium to large institutions are familiar with this process.

@Byron Beckford like most comments say, your best bet is a commercial or institutional private lender.