AND even if they have this well thought out plan, the cost of fabrication and construction will rival a traditional new build. 

I am just if you are open minded to a traditional rental or just student rentals.  

This is the first real boom that the country has experienced and the only resource we have is human so I doubt that property prices can sustainably increase for long.I have listed out several options on piece of paper so that I can help myself decide but would also love your input.Option 1: Buy(without a mortgage) a large rehab traditional house that me and my partner like.

These costs would be charged against the house before profit split.Option #3 is how it is usually done with 'traditional' real estate private equity funds where you can easily arm's length property management fees since there are obvious standard rates when you only own a few assets, etc.Does anyone have any experience with how to allocate and split these operational costs in a medium sized flip fund ($30-50M of equity)?

You act as a property manager, get the rents up, then take the financials to the bank with strong cash flow and get traditional funding. 

(There would also be no double taxation of sale or liquidation of said property because the C-Corp never owns or has the deed to the property).So if everything written above is correct, we can then say that the tax obligations (on both rent income and capital gain) are the same as what it would be under the traditional alternative (simply using a pass-through entity).If this is indeed the case, are there any benefits to be reaped from operating under a C-Corp in this manner?

You have traditional investments, stocks, etc., but have decided you want to start investing more in real estate as wellYou own a primary residence free and clearYou have 100k of free capital that you can use to buy your 1st investment property.

This is hard for me to answer because things are done so differently from state to state depending on laws and traditions.

@Alex Deacon The idea is the same as traditional BRRR strategy where you buy 20-40% below market value that requires major rehab/some rehab/cosmetic only/or turnkey, and include those cost when the spouse purchase the LLC's property.

Sheriff sale, wholesaler, traditional broker, Craigslist, etc...4) What Dallas-area lenders might you recommend?