I'm assuming that would mean an understood system of communication with the contractors, preplanned order of rehab, frequency of site visits/inspections, etc.  

There are a number of practices that can help defer taxes or help get preferential rates, but real estate has been bought and sold for at least a few thousand years before anyone thought of the United States or the IRS, so it's fairly well understood and they generally will make sure that tax is paid on income earned in this space.You'll want to figure taxes into your planning- the way you structure your business may help or hinder you through when the income/appreciation is recognized.

The deals legality also might depend on what state this is all in too.The last REI meeting I was at an Attorney and a Investor that understood a new piece of legislation that throws into to question even assignment in the state of Arkansas.

With that understood, here's what *I* would do in your situation.

I really never understood that...

I thought I understood how to create my own list until I saw the small amount of results.

I have read and understood my mortgage and talked with a number of professionals in my area.

The final paragraphs are what I had understood to be the "process" for using an SDIRA- The LLC was implicit. 

I immediately understood what Jim Rohn meant when he talks about the day you've finally had enough. 

He understood his situation and agreed to comply.