Are there many REITs that currently regularly engage in this type of feeder based structuring for a investors?

They are releasing permits now on a regular basis and things are able to move forward like they should.  

I didn't even have $1000 saved at that time and I was really just thinking of going the regular route of going through the banks and just save up as much as I could for a down payment on my first investment home to rent out.

This is due to bonus depreciation which allows taxpayers to deduct 40% of qualifying property costs in the first year, in addition to regular depreciation for new construction and improvement.

Do you have a 501c3 that you operate under (and rent the house from yourself), or do you purchase homes with an LLC or personal name, and run as a regular business? 

The participation must be regular, continuous, and substantial as defined by the IRS.

Investment returns automatically deposited on a regular basis.

I’m thinks just pay him his regular price for the job and throw him 5-10% finders/gc fee instead of making a 70/30 split or something like that.

Your best/safest bet would be a regular lease combined with an option to purchase.

By all means give them a note on how to use all of the appliances (eg clean out the lint trap on the drier after each load, do not use dish soap in a dishwasher, change the furnace filter regularly, etc).