Very excited about this and looking forward to the closing this month.My question is really around fully protecting myself during this process, the reason-being, we're buying this short sale all-cash and the cash comprises the vast majority of my savings and liquidity.  

I want to keep about $10,000 in cash liquid in case of an emergency with one of the properties, but what should I start doing with anything above and beyond that?

It is a good thing, it brings liquidity to an otherwise non-liquid vehicle.  

Real estate partnerships are not immune from diversions of interests between investors.QuickLiquidity acquires minority interest positions in commercial real estate partnerships on the secondary market, providing immediate liquidity to limited partners. 

The consensus wisdom seems to be that the best buys are often the all cash buys (court house steps, sellers that want to sell ASAP, etc), meaning you need to have a way to get that $250k liquid overnight.

Liquidate the rentals further down the road. 

If you are right on liquidity and must go with low down payment seller financing seller will probably want a higher price.   

Also consider the equity you build as a forced savings (not very liquid though).   

Being forthright and discussing this will give you credibility and respect.3 important considerations:Don't  borrow from people for whom the money is a part of their needed liquidity...or might be in the near term. 

I have been finding though even hard money wants either a credit score or proof of liquid funds in your bank account.