You provide the capital and the deal, he provides the expertise, and you learn from him.

I believe that forming an LLC protects your personal assets and credit rating.

They can offer any insurance they want, but the only insurance they can require is property insurance to protect the collateral.

This will protect you against unknown liens, etc.

I will protect myself by getting my own inspections.

I am not a big believer in the SEC goal of protecting innocent investors. 

Do you have any info that could help me out with that as far as what contracts I need and clauses to protect me and also how to fill them out.  

You might leave a little money on the table but you will be protecting your profits much more than averaging things or taking the lowest guesstimates.

Drug addicts in recovery qualify as disabled and are protected by federal disability and housing laws.

A PM is an intermediary and their business is NOT refurb/rehab and if you elect to use one, they'll just smile and proceed without concerns other than you pay the bill.a) network with friends who have remodeled recently to get names and first had references - - one of these are work 10x any website review.b) learn as much as possible about what you WISH to be done vs what actually NEEDS to be done (ie know the needs vs wants problem we all have) as there's lots of cash between them.c) read up on contractors bid process in your state, the allowable deposit and how to make progress payments.d) set a completion date with penalties for missing it.e) a contractor must have a license; verify and find complaints. f) must have liability insurance and be bonded (this protects  you from him just walking away).