The only way to make money in bad neighborhood through LTR is either getting the government benefit or running it as a slumlord.

This is because most of the financing comes from government programs and they, of course, prefer to keep as much investing as possible within the country.  

It blows my mind that you can actually start and operate a legitimate business in the US without telling the government (not the public) the name and address of the owner.

The first thing here would be the regulations and laws governing acquiring properties, managing properties and selling properties.

The labor is cheap but is usually terrible quality.You have very little insight into the governments plans for development and i have seen that have amazing impact on some areas and terrible impact on others.If you are going through with the purchase i wish you good luck and urge you to consider traffic patterns.

Why someone willingly wants to work with a government agency that will slow down turnover, dictate rents and rent increases, and dictate repairs is beyond me. 

A government agency pays part of their rent. 2.

When contract's (agreement's) are governed by, the law, violating an agreement (breach of contract) would be an unlawful act, would it not? 

Which governing body determines these requirements?

You have to understand that these people don't care about anything, and the government people are overworked and will not follow up with all the small cases.