@Claudio Romero, do what everyone else is doing nowadays:  When he confronts you again pull out your phone and start recording him, then name and shame online. 

Confront the situation? 

The thought had entered my mind but was unsure how the general sentiment was for investors and how they  confront an eviction scenario right out the gates.

Case in point Holiday falls on the first of the month which is a Friday, and their company pays payroll the day after a Holiday which is Monday. expecting payment Thursday would be a bad idea, because that means they pay their rent a near week before payday.I would deduct from their security deposit for fines, tenants are living in a high value asset, they can destroy property confrontation should be avoided.You should take responsibility for pest control its your asset you are protecting.Steep fine for painting, you might as well say eviction, you will never collect that money.Don't restrict your payment methods. 

If they don't comply you are better off evicting them.I would not confront them in person without police present.

Confrontation with the other investor may not be the best use of your time.

I later confronted him and he came prepared for all of my questions, telling me that I can't prove he smoked. 

That answer will give you a clear path forward for almost all issues that have to be confronted when owning and managing rentals IMHO.

Now you better the 100% sure before you confront a tenant and would advise consulting a local attorney if you think this is the case.

Be aware that most of the sellers on the Internet are crooks who know that emotion and fear make many sales and they are too far away to be confronted and are strangers.