I would receive the rehab project cost from him and he will self-fund the rehab and we will split the equity based on capital injected.  

You'll need to watch it closely without injecting delays in the process.Another thing you might consider is to do each house from a unique checking account.

As a disqualified person to your IRA, you may perform very basic and limited administrative activities, but you may not personally benefit nor may you inject value into the IRA via the provision of goods or services. 

Another option is partnering with someone who has the cash to inject as a down payment. 

So, pros and cons, but as a longterm investment, little has as strong a track record as publicly traded stocks.Just injecting a balanced perspective into the (rightly) real-estate-favoring conversation!

Hence I use any opportunity I can to inject a better is better mentality into my investment talks.  

Also what happens if one partner injects more equity into the LLC?

Hardly anyone even posted on it, and yet I continued to inject my annoying comments into this forum over and over.

When the market turns on you, you will have very little options but to keep injecting blood (cash) on your own.

The DST model only allows minimum maintenance and not large capital injections so that takes out most upside properties.I have been asked to take 1031 money as a sponsor for a syndicate deal.