The funding is on hand although I do agree with you that it is safer and practical to focus on wholesaling.   

The main benefit of an LLC over home insurance is that it provides personal liability protection, so if something goes wrong, your personal assets are safer.

Alternatively, DSCR ratios may not work out due to efforts to maximize the loan amount and avoid additional cash contributions. 

Our home is accessible to major freeways, and shopping, and about 15 minutes to the DFW International Airport.Major employers nearby: Sabre, Charles Schwab, Deloitte University, Fidelity Investments, Travelocity, Amazon, and Wells Fargo.For the active lifestyle, within a couple of miles, is a tennis center, pickleball complex, baseball fields, a community swimming pool, walking trails, and a community fitness center.CRIME RATES:It is considered one of the safer cities in the nation where crime rates are well below Texas and National averages.LEASE DURATION:The residence is offered for short-term leasing with a minimum rental period of 30 days.MISCELLANEOUS:We offer initial sets of bed linens, towels, and essential bath items.

When you counter, or make a substitute offer after the seller says no to your original offer, all you're doing is telling the seller your first offer won't your real offer, so the seller will keep countering until the squeeze you to death.Make one offer, no counters, no alternates, and they either accept it or they don't. 

In particular, I'd suggest asking those folks about what types of challenges they encountered, lessons they learned, and mistakes they made with OOS REI ...It's a lot easier, safer, quicker, and cheaper to learn from other peoples' mistakes than to make your own...Good luck out there!

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.

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.

Fixed could be a safer bet with your loans already playing interest games.