Not sure if that would technically be allowed.

Yes, probably 50/50 to start and then once you have a strong track record with them, you may have the leverage to try to get a higher percentage on your end since technically what you're doing is more time intensive than what they are doing (cutting a check).

Technically in AZ the renter can ask for last months rent back after they move in but most do not. 

But much like the relationships of the people living in a house hold this is very difficult to enforce across the board but the law is technically the law. 

I crunched my numbers as well, If he puts down a 100k, I now have 135k technically tied up.

If the contractor isn't helping you make good decisions, maybe get a local investor wh is savy to technical issues of rehabbing to help you.

When you transfer title to the LLC, the lender COULD choose to call the mortgage due and make you pay it all off because technically you have "sold" the property to the LLC.

At the end of the day, it's still technically a Single Family Home with an extra unit to help offset expenses, but not a "true" investment property or legal duplex.Does anyone have any ideas on creative ways to finance building this (besides Refi or HELOC)?

However, technically it is not the rent. 

So pretty much where we are except for the technical unemployment numbers?