The biggest miscalculation for me when just starting out was underestimating the need for adequate replacement reserves to minimize disruptions in cash flow. 

If the properties are adequately insured you should be OK.

Secondly, how do I structure an offer to adequately protect my interests.

This is something I'll revisit in the near future, but at this immediate stage the goal was to get adequate coverage quickly.

They could have invested all of the equity and improper planning would still put their outcome at risk if they didn’t have adequate reserves. 

- Probate Properties- Pre-Foreclosure/Tax Issues- Divorce - Financial HardshipI know that is kind of a loaded question and would require more than a simple post to answer adequately, but I am just hoping to possible eliminate some strategies that don't provide much success through Facebook.

LLCs do create some financing issues.When a LLC is not set up properly it is useless and protects nothing.Best protection is high leverage, and adequate insurance.

Is a mileage spreadsheet adequate or do I need some sort of proof?

I'm anticipating a shocking number, but I figure I can put $230k into the rehab and still make adequate cash flow.

They will know the laws in your state and make sure that you are adequately protected and setup for tax purposes.