You should absolutely discuss what should happen if you get into a fight and end up not speaking to each other - stranger things have happened no matter how long you have known them.It sounds like this would be a short-term living arrangement, and you would each own the half you started out with.

Now, someone told me that I could create an Operating Agreement detailing the arrangement with the contractor, the idea being to give the contractor confidence that everything is on the up and up, and he is adequately protected.  

Will need to investigate this arrangement further.

Using the appropriate furniture arrangement, the stager can help you sell the house. 

Example ( if your gas bill is $500 you must pay the entire amount) they do not want you making Payment arrangements.

My current financing arrangement is as follows:I have  a local bank who is giving me essentially a line of credit at 6% paying 1/2 a point and a 6 month call. 

You're either" acting agent for " and have a fiduciary duty to do the best job representing that seller to get the best price, or you're not acting as a fiduciary and you're acting as a principal and a for-profit business arrangementThis is called being an investor agent where you both list traditionally or you enter into a business arrangement with the home seller.When you were acting as a business owner and a for-profit contract even though you're licensed, that should be fine with your state lawsI know with your question your thinking like a leasing agent charging one months rent. 

The last thing you want/need is this tenant to be injured while doing such work, only to find your liability insurance will deny the claim based upon such an “arrangement”.Also, if you are rehabbing and flipping houses, do not purchase the materials foryour contractors as this too will imply an employee/employer relationship.Get your bid.Pay your contractor and have him buy his own materials based on the bid.

This one needs just a LITTLE bit more than the other one with some arranging of appliance hookups but again, nothing huge for work needed.

You aren't an SDIRA Fund manager licensed to arrange financing conduits, you aren't a mortgage brokerage, you aren't a registered lender or servicer, so, absolutely not, you can't jus do what they do!