The procedure is they have the contractor fill out 2 forms, they send an inspector to make sure the work is done (to some standard, I would guess), approve it, send me the money, and I send it to my contractor.

Let them know you put in new policies and procedures and this new policy relates to all parties going forward.  

do not think a GC license is the same in all states or that it will protect you - in CT all it takes to get a GC license is like $200 and a postage stamp - these guys can do roofs too - I think in NY you actually have to demonstrate you know about roofing to get a roofer license - check the procedure before you think a piece of paper means more than it does, and keep in mind the BBB and/or the state may not help you and that it will likely be your money that gets drained if you sue an LLC

Under the Erie doctrine, federal courts sitting in diversity “APPLY STATE SUBSTANTIVE LAW an federal procedural law.”

I write down checklists and procedures for various aspects of property management like leasing, make-ready repairs, lease renewals, evictions, etc., go over them with my PMs and make sure we're on the same page.Then I follow-up with them at least once a month to see how things are going, to check if we need to make adjustments to anything.

I couldn't believe it If you haven't seen that one look it up and watch ityes as a home builder myself  ( small although I was just written up in the business journal in Portland) I made the list of top 30 builders in Portland I am number 24  with DR Horton number one  so a little ways to go.What that guy did only happened because of VERY sloppy title and escrow closing procedures..

Some of the skillsets might seem similar and the procedures might seem easy. 

Non-payment of rentBreaking lease earlyAdding unauthorized tenants or animalsThose are probably my most common three, but they aren't much of a problem since I have policies and procedures in place to handle them quickly and professionally.

What I experienced in engineering work was that the problems were solvable by following certain standards and procedures, it lacked a lot of creativity - kept us confined to the boundaries of the books.

in affected areas first.Taking out drywall is also fairly easy (big hammer, regular hammer, and flat prybar is about all you need) but is very messy so enclose the work area, wear protection and ventilate it.Note if if this is a pre 1978 house which it looks like it is,   and you plan to rent it,  then legally speaking you must be lead paint certified and follow abatement procedures when removing or disturbing more than six square feet of painted surface in any room.