I'm grateful to have completed another 1031 Exchange.  I look forward to what's next.

My questions are: Are they any implications (tax or otherwise) if after the funds are paid into the business account and my friend writes a check to their personal account from the LLC to get his money out?  

With the high property tax and about 10k of work needed on the home.

From Wikipedia, Alabama has the second lowest property taxes behind Hawaii.2.

So I am looking at a house that is in a run down condition and did a tax look up.

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.

The seller needs moving money, there are oftentimes an arrears that has to be paid on the loan, there are oftentimes HOA fees that are due, there are title costs, there are escrow costs, usually there is deferred maintenance, you have to make mortgage payments out of pocket until you get a renter in there, you have to pay utilities and taxes, and you need reserves in case it all doesn't go as planned.3.

Or the option to refi in a few years and get another in the same situation, with tax free money. 

Hi,I’m considering a partnership with my next rental purchase, and this would be my first partnership.Do you form an entity for the property such as an LLC taxed as a partnership before acquiring the property?

It will, depending on the financing, rents are strong in that area.Let's say you take a mortgage of 600k (75% of your ARV) Taxes - 5k Annually Insurance 2k Annually Rate - 7.5% 30 Year Fixed Your PITI payment would be $4,778.62If the lender is using a DSCR of 1.1 - you would need actual / market rent of $5,256.48 to qualify for a 75% LTV loan.