Bank statements are nothing but a sanity check in case you think they provided fake tax returns maybe.

It would be like writing a check to yourself. 

Without a job ,  or a credit report and all the other necessary info they cant pass a background check .Will the government make it illegal to do back ground checks ?

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?  

It is not asking to much to ask to meet first and to be blunt, if someone you can't afford a $800 round trip to go out and at least meet a potential PM and agent and check out the area then........yes deals in some area of Cleveland happen very fast....but it's not an excuse to not fly out there.

@Ceasar Abreu, another possible benefit of a HELOC is they are often interest only for many years, which means your net cash flow could be higher, but this also leaves a balloon payment.I will echo Greg: the only thing refinancing definitely saves you is having to write one check instead of two each month.  

typically a BRRRR property is so distressed that it's not possible to purchase with conventional financing - so the usual options are actual cash from your own checking account (if you have it), or private money or hard money. 

I'll check out some 3/4 unit properties and see if I can make that work

Check out www.506investorgroup.com. 

KEEP IN MIND city redevelopment departments have a lot of red tape to go through and this can take months before your prospective tenant is at the mercy of the City to be approved and then follows up with your tenant checking off all the requirements boxes the city department needs your tenant to get completed before moving in /opening up its doors for business.