Red flags they look for: Inspection periods that match the closing dateWeasel clauses that give you a right to cancel up to date of closing without a bonafide reason.Not having earnest money in the game especially when combined with one of the above  Unilateral right to extend or do something without both parties agreeing to the change.Placing liens on properties without the intention of closing and not removing the lien if the contract is cancelled.This last item was one of the reasons the Commission has gone so hard after the "Wholesaler" from Florida.  

Just don't list ordinary wear and tear items.

Have the departing tenant fix any items that you and the other tenants believe were the departing tenant's responsibility. 

As far as your concerns, there should be a separate bank account for the LLC and for any withdrawal not a specific budget line item (if you're renovating), or not a recurring monthly expense (if you hold and lease out), or  maybe over a certain dollar threshold, checks and withdrawals require both of your signatures.

Try to think of a splurge item that isn't too extravagant seeming.

I am sure that you are like most people in the world and that shelter is one of the most if not the most substantial item in your budget (And I certainly hope you actually have a budget, if not make that step 0 because you can't save, let alone invest, money if you don't know where it's going in the first place).

So I circled the items on the disclosure that were inaccurate and presented this to the sellers agent.

I'll take photos of the overall condition of the house, and then specific photos of any items the tenants want annotated.

Tear down lots for custom single/double builds here are the new hot item right now!

I look at it as an expense item as part of my RE holdings along with taxes and other related expenditures (which I leave to my accountant to allocate).