I'd recommend getting a free cost/benefit analysis quote from a cost seg company to determine if the tax benefits would outweigh the costs.

If so, is there certain steps to take to qualify for the tax advantages?

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

To clarify @Jason Wray's response, monies pulled out of an exchange are called "boot" and you pay taxes on them. 

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

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.

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?  

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

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