I'm willing to bet there are more people like me out there than you think, who have the money but not the needed skills to start, who would be willing to partner.

That is a good return to live off of for retirement although you would be safer with 2M invested..Good income with no work and no responsibilities beyond meeting periodical with your financial advisor.

I would say, your best bet is to pain the units a modern greige color like Revere Pewter by Benjamin Moore.

If I get some more specifics, I can probably advise you a little better, but your best bet may be to go deep into Queens or Brooklyn (near a subway, but making a pretty long commute), south Bronx or Staten Island (which doesn't have a navigable subway to the city (but relatively close if you can take the staten island ferry, which is free).

I agree, small claim court is your best bet to recover your money.

Location, location, location...make sure you are in a safer neighborhood that would attract good tenants...this above all can make or break a property IMO

Plus, an up and coming area here is a hell of a lot safer than other gentrifying areas of the country.

I think a lot of investors are drawn to real estate as a safer and less volatile place to park their money than other markets. 

   #2 - question- what are some innovative safer paths to hire reputable contractors and weed out the flakers unreliable ones?

Your best bet would be to talk to a securities attorney.