Do I form a limited partnership with an agreement specifying these details?

He seems to know his stuff, has worked on boats all his life, was able to lay out for me in detail a couple options to redo my kitchen and bath cabinets for $12/hr and he'd use me or someone for grunt work.

I also thought about creating some kind of loan or rental agreement with the homeowner but didn't really look into the details of it yet.

If one were to tell me they had cancer I think I'd respond that 'I'm sorry to hear that' and wouldn't ask for further details or interact with them any differently.

@Nicholas Baughman You won't know if they're squattors or owners or renters, and depending on whether they engage with you, you may not find out for a loooonngg time.I have no experience with buying occupied bldgs with non-cooperative tenants, but I know enough of the details in our area to know it's a specialty you'll need to be good at or hire someone who is. 

Are there any good resources you would recommend that give broad overviews of the markets and then some that provide more detail?

Just to throw out some more details to see if you have any thoughts...So I'm not a realtor and won't be on the "transaction side of the sale of the relinquished property".

Details: Built 1947, ARV 210K, 1050 Sqft.I know it's best to get a contractor to get an exact estimate.

The plan does not have to be extremely detailed, but you should give yourself an outline. 

I have agents, title companies and escrow, now I am looking for a General contractor who can assist me in the finer details of the remodel.