well part and parcel of most contracts is marketable title .. this title right now is not marketable if they don't have the money or there is not sufficient equity to pay the liens then its a sale fail.  

When the company needs more money will you take loans or each have to increase your investment equally to ensure 50/50 equity?

Make it L shaped like above by moving the door to the dining room and also make a pantry as shown but I favor making the dining room wall a half wall or pass through, that is how people use dining rooms now. 

@Tyler Deuel, some lenders are less likely to take the equity as your cash contribution.

Second, where are you building equity? 

As I understand these are pretty hands off real estate deals, which is nice for convenience but i'm really scratching my head thinking that a 8-13% return is worth the risk, especially considering what US equities have done over the last several years.

I am debating between attempting a BRRRR (using land equity to fund rehab) or a turn-key that would meet the FHA loan guidelines and just get an FHA loan.Any wisdom/guidance is greatly appreciated!

Hey, what I have done In the past is provided my services to other investors where I partner with them and build the house and charge a management fee+ equity.

Get an equity debt loan(a partnership) with someone who has done this before. 

Plus...escape velocity...Episode 113 – Jay Papasan - Very practical slow and steady adviceEpisode 221 - Tim Shiner - his concept of equity build up and "shearing the sheep" shows some of the flexibility of real estate vs a 401k Last but not least, I also recommend all the tax advice given by my fellow CPAs on the BP Podcast.