Each with one vote (to avoid deadlock)Partner roles:  I do all of the work and both other partners are totally passiveUpfront capital:  5% from me, 95% split between the other two partners (47.5% each)Treated as a loan at 0% interest with no fixed payment scheduleCapital goes to:Purchase priceRenovations + bufferClosing costs1 year of CapEx reservesOwnership:  Each partner owns 1/3 of the LLC and propertyLoan payback:  50% of monthly net operating income goes to pay off the loan pro-rata based on invested capital %, 50% goes to cashflowCashflow:  Even 1/3s (after expenses and CapEx reserves)Upon sale or refinance:  Loan paid off first based on % invested capital.

So, if there is no written agreement in place and one person is covering the majority of the mortgage payments and rehab costs, that person would/should be entitled to the pro rata share of their contribution(s).

The expenses are then deducted in a pro-rata share on that schedule E.

Let's use some common terms in line with the discussion above:  8% preferred return, 75-25 pro-rata split of profits. 

@Jacob Casarez, If you've set up your tax records so that you actually report rental income and expenses and take pro-rata depreciation on the rental portion of your house then that portion of your house could be considered to be rental real estate and the 1031 exchange would be appropriate on that portion.Talk to your CPA, you may find that they have not treated your income that way and that in fact the whole house could fall under sec 121 primary residence exclusion.One thing I would caution is to make sure that your intent and vocabulary used are consistent with the intent and practice needed to qualify to use the 1031.  1031 exchanges are for property that has been purchased with then intent to hold for productive use in business, trade, or for investment.  

Would I be able to use the refi proceeds to essentially buy out the 50% ownership of the SDIRA, or would they have to be distributed between the SDIRA and the cash position pro rata?

Specifically, I would give 50% of the deal to capital contributions, and retain 50% of the deal for yourself.So, if you need $20k, you basically give out 50% of the deal pro rata to each contribution: 10k= 25%, 5k= 12.5%, 5k= 12.5%.In this scenario Family Member #1 would receive 12.5% and Family Member #2 would receive 25%.

It seems that as long as I am not personally using the investment properties and that whatever principal and pro rata share of profits from the deals went into the SDIRA trust that it would be OK.  

However the likely scenario is that there will be x amount of money left for all unsecured claims which will be divided up by each creditor's pro rata share and distributed likewise.I am also speaking in terms of a Chapter 7 bankruptcy.

Any assets converted to a Roth IRA are treated as consisting of pro rata portions of basis (if any) and pretax assets.Conversions to Roth IRAs can be done either directly or indirectly and are reported on Forms 1099-R and 5498. the Roth IRA owner must report conversions on Form 8606, Nondeductible IRAs.An IRA distribution that is directly converted to a Roth IRA is reported on Form 1099-R with distribution code 2, Early distribution, exception applies (for IRA owners under age 59½), or code 7 in Box 7.