Evaluate the situation to see if you could have done anything differently to mitigate the loss and implement changes to your processes, but know that this happens and hoepfully just not too close together. 

Raising money is all about marketing and sales (not real estate specific) so either hire marketing agency and read sales books, or hop on some LinkedIn courses on marketing and sales.Not sure the legal structure to use: talk to accountants and attorneys.Need deal flow: talk to brokers and go to a lot of networking events.Lending terms: start calling banks and loan brokers.From there, it is all risk mitigation. 

I position my inspections as 'planning for future repairs/improvements' which mitigates that whole 'he's here to get my security deposit' mindset.And, I would rather have the tenant with me than to have him later claim that something was broken during the inspection.  

One option might be to explore adding air purifiers or filters directly into the system to help mitigate odors.

However, a lot of concerns can be mitigated with looking at their past rental behavior in a lot of different settings.

Can some of your concerns be mitigated (locally) through things like strong tenant vetting and property class selection?

As always, this can be mitigated with proper screening of applicants by verifying rental history and contacting prior landlords about the prospective tenant's past.

If you do most things right, most issues are mitigated and it's not too bad, but there's no guarantees.

It also could come from not having an experienced partner to help mitigate risk. 

From 2nd Mortgages to 1st MortgagesWhen I started, PPR was buying primarily 2nd mortgages. 2nd mortgages is essentially loss mitigation (helping the borrower get back on track and stay in their home).