This will keep the cost down on the initial inspections, but still gives you protection if something is found. 

These laws are put in place to protect the public from unscrupulous operators, which is what most wholesalers are.I say this because the only way a wholesaler makes a profit is to steal equity from the seller. 

Do not over-leverage, and even more importantly, protect your cashflow.

i personally invest in low cost index funds until i have enough money then purchase a rental property. my thought is a savings account doesn't offer anything except protection, so asides for an emergency fund, hold the money in the market (it might go down) so it has the chance to grow. i think that by keeping in the savings account you are taking risk by not growing at all!

Which do you feel gives more protection?

I am born and raised in the Kansas City area and work in the fire protection industry. 

The general public needs a governing body to oversee this stuff to protect the public's interests.

Your best protection is making sure you scope out your property BEFORE placing an offer - in addition to the work it may need, make sure you have a real estate connection who can help you run comps and make sure the ARV works with the ROI you need to keep going.I'd make sure you have financing in place as well - you'll want to ask around and compare your interest rates and make sure the loan is rehab-friendly.

I would let them know that not only will you not be reimbursing them for unapproved work, but you now have to hire someone to inspect the repair to make sure your property is protected.

How can I protect my personal wealth if I don’t form an LLC ?