The application process requires financial statements along with business/partnership tax filing.

My contractor offered me a partnership on his next house flip, what can i do to protect the money i will invest?

@Nick MurrayYou should look at the two scenarios from a tax standpoint and a legal standpoint.Legal - Will you be better protected if you invest through an LLC instead of your personal name.If you are investing in a syndicate as either a member in an LLC or a limited partner in a limited partnership, the decision of investing personally in your own name or in your LLC may not matter.This would be true so long as the syndicate is properly set up.Tax - Will you be taxed differently based on either scenario.

This is my first commercial deal, my first partnership, and my first rehab of this size.

It would be a 50/50 partnership.

And it would be better to also complete the 1031 and then contribute into a new entity.The exception would be a "disregarded LLC" that is a single member and taxed as a partnership. 

Unfortunately, you need to wait for a 6-month seasoning period before you tap into your home equity cashing out to start and accomplish your renovation projects. https://www.fanniemae.com/content/guide/selling/b2/1.2/03.htmlCash-out refinance transactions must meet the following requirements:The transaction must be used to pay off existing mortgages by obtaining a new first mortgage secured by the same property or be a new mortgage on a property that does not have a mortgage lien against it.Properties that were listed for sale must have been taken off the market on or before the disbursement date of the new mortgage loan.The property must have been purchased (or acquired) by the borrower at least six months prior to the disbursement date of the new mortgage loan except for the following:There is no waiting period if the lender documents that the borrower acquired the property through an inheritance or was legally awarded the property (divorce, separation, or dissolution of a domestic partnership).The delayed financing requirements are met.

Are you all OK operating (now or later) as a partnership for tax purposes?

My goal demands achieving a high amount of cash flow over a short time period which means I may need to be more active in my investments, focus on value-add deals and utilize partnerships for larger projects.

@Mo FarrajYou should have your attorney draft a "partnership agreement" that takes into consideration state law in your jurisdiction.Depending on the amount of profit you're expecting and/or the amount of deals you intend to do with this individual, you may want to ask your CPA and attorney about forming an LLC and writing yourself into the operating agreement as the "functional equivalent of a limited partner."