It seems like the general practice start filing as soon as they’re late but that will show up on the report as an eviction. 

Failure to comply with the process described was, by statute, considered an Unfair trade Practice (UTP).

Now I just need practical next steps to set this up in my favor.

@Allan Ringler the best advice I can give is to invest for cashflow and look at appreciation as the icing on the cake as the value of a home isnt static over time the property will appreciate and depreciate based on comparable sales (if you're looking at SFR or small multis) Investing in towns like Montclair sounds great but in practice its hard to cashflow without a huge downpayment or all cash purchase.

As you said, different markets surely require different practices.

@Emilio Ramirez The situation is somewhat complected as I think the GC took the job more as a favor to the PM then really needing me as a client...he is still getting a fair deal out of it as 4 other bids all came around the same number which was slightly higher (but still close to what I calculated)...He was behind on his previous commitments and started my job about 3-4 weeks later then promised...he then had to go close another full framing job before a week of rain hit the area...and then he relaxed while his plumber and electrician were taking their time doing the roughing...so he jumped to another job...Since the house is intended for student housing and by this stage we already missed fall semester...I guessed he relaxed even further.Generally as an architect I always feel contractors are too optimistic...don't know if you agree as a GC yourself...and I guess one have to be to stay sane doing this.Daily phones are not an option as the guy practically respond selectively to my phones...lets just say he is not going to be on my next job which is a pity since he does look like a good contractor (work wise)...unfortunately from 100 miles away good communication skills are a must.Payment is an issue since I am doing it through the management company and they seem to have just approve his draws automatically...but I stopped them just before 2nd draw...firing him though is complected since I still don't have any other GC alternative...do you know any one in Allentown PA?

Two hour repair (replace supply line) = $150 chargeIs it common practice to request an itemized statement from the property manager about the repair so I get an idea what type of work was performed?

That's firmly attorney territory and you should be consulting an attorney if you're interested in mitigating risk.A CPA will generally be able to help you with one or more of the following: tax compliance, tax consulting, and/or bookkeeping, depending on what specific services their practice offers.

It seems that even the 'junior lenders' are starting to fall victim to some of their practices. 

And where practicable, I'll include the screening criteria in the rental posting, or at least say something like "must have good credit."