Explore alternative options like hard money loans (fast but high-interest), seeking private investors, or obtaining a business line of credit if your business generates income.

In six months, you will have done more research than most on these two alternatives, and you will have your answer. 

Alternatively, what's the best way for my friend to get their funds back without any tax implications (if any) for him and business?

In that I would not own the home in my name (the trust would) under those assumptions.Is this even a reasonable strategy to jump start a real estate investment portfolio, any alternative ideas are welcome.I hope I have stated this with enough clarity, Please let me know if additional information is required to answer the question.

BookingPal is also a great Channel Manager, alternative to Rentals United

House hacking is a possible alternative, but given California's high real estate values, investigating other areas may be a good decision.Houston, TX is frequently seen as a favourable alternative for out-of-state real estate investing for various reasons: Diverse Economy, Population Growth, Affordability, Landlord-Friendly Laws, Job Opportunities etcRemember that success in out-of-state investing often involves ongoing communication, local support, and adapting to the unique aspects of the chosen market.Good luck!

Passive investments like bonds and index funds are not comparable or alternatives to active investments like real estate. 

This would be used as an alternative to the traditional wholesaler's assignment contracts In South Carolina they are cracking down on wholesalers and I want to make sure we stay above board.

With the I-87 highway expansion, Zebulon and Wendell are becoming great alternatives while Clayton is benefiting from the completion of the I-540 loop.

An alternative is purchasing a SFH that has a casita/guest house built, or a SFH with a shed/detached garage that can be converted into a casita/guest.