1st deal w/ partner - company structure?

[Steven Tankersley]

Background:

I own a construction company here in California, and hold my RE license. I have been looking for the right opportunity to come along, and a deal landed in my lap when another Realtor called me to provide a renovation estimate for a property which had essentially been a hoarder house. I asked if the seller would consider a cash offer, as-is, and she said yes. I have an acquaintance who is also a RE agent who has done a flip or two himself, and had some cash to park. I contacted him, and laid the offer out, and he was on board. 

Purchase price: $425,000

Repair estimate: $100,000

ARV: $650,000

Our offer was accepted, and we are in escrow today (21 day escrow, with 15 day inspection period). We wrote the offer the name "LLC or assignee" to leave the option to form our LLC. Our financial arrangement is my partner will put the 10% down for the HM lender, and pay closing and holding costs ($65k anticipated) My construction company will be doing the renovation, and I intend my company to bill our partnership for costs incurred (direct cost, no markup obviously). Profits to be split 50/50.

My questions are:

1) What is the best corporate structure for our partnership based on the info provided? Should we setup an LLC specific to the property (123 ABC St, LLC for example) and dissolve at completion? Should we setup an S corp? How have others gone about this with a partner, and how do we get our profits out if we set up the LLC? We have to get this nailed down by the close of escrow obviously.

2) Our HM lender terms are: $375k initial loan + $100k construction holdback = $475k Total Loan, 10%, 2.5 Pts, 6 mth. Any thoughts/input appreciated. 

3) Any input or advice on our deal and how to keep risk minimized, and everyone happy would be appreciated. 

Thanks!