Then do a thorough research on tenant applicants (note: leaving this to a PM may be hazardous to your financial health) and choose the one that is most “stable” with the best potential for long term tenancy.This advice is contrary to maximization of rental income, but IMO will reduce expenses of tenant turnover, property damage, property management fees so much that the difference in bottom line income will be quite small.  

Any tips anyone can share on how to find a reputable and trust-worthy contractor and/or a lawyer who can write up less riskier work contracts?

Almost every reputable lender is going to have a draw process for any lender funded rehab portion. 

You want to find local home buyers with overage who wholesale as they are usually more reputable.

I like working with lenders who are familiar and reputable in the market you are investing in.

  $7k damage. 

The property was impacted by hurricane Helene and there is no substantial damages letter issued (yet?)

Lol, every single time I've decided to do the painting myself........about halfway through I am regretting it big time......my body hurts, it's mind-numbingly boring (I think that's why painters have the drinking/druggie reputation... :-)

Insurance doesn't cover anything anymore and we can almost just pay for all damages with the money we spend on it! 

b) How do they (Cali Govt) deal with the damage, both in terms of who gets the blame and also where do they get the money?