@Dan StrandbergUnless the process is different there, the inspection should include identifying the type of septic tank and drain field/system; evacuation; checking for cracks/roots/deterioration; type of material tank is made of; if it’s level; size of the tank- is it large enough for the number of bedrooms; whether it closes properly; whether water run through it drains properly; that the ‘hatch’ closes properly; setbacks from the home/boundary etc; and whether both septic and drainage meet any existing regulations.Hope this helps!

Also ensure that you get the security deposits from the seller as well.  

I don't have experience in the Detroit market, but I assume there are plenty of properties available that look great on paper but are going to be a real challenge to manage properly, especially from across the country.

@Grant Steiner - If you're planning to rent it for a year or two before moving and getting your own residence the most important things will be making sure you have signed leases and that you are properly reporting everything on your taxes.

Do everything by the book, and in the case when you are faced with a lawsuit, use a good liability policy as a first line of defense, and your LLC that you have properly structured and documented  as the second.

You should be able to locate an excel spreadsheet in the proper format. 

If for a example there were unpaid taxes, unreleased liens against the property or problems with the legal description of title, this will ensure protection for any claims or legal fees that arise should you run into these problems.

I wouldn't shy away from the deal.. just realized you would have to give proper notice of non-renewal to that apartment and you also let sec 8 know the lease is not going to be renewed. 

Communicate to the sellers that you're willing to perform, but they need to either properly remediate the issue or lower the price.I know you're looking for people who have specifically negotiated this with a bank as seller.  

But if she isn't familiar with that market - and I'm certainly not - then she may not have any idea how to properly market it.