And why in a real estate investing forum since it generally not advantageous to hold property in C or S Corp entity?

Personally, I'd bet on owning property in LA long-term, if you find the right opportunity. 

Either roll up your sleeves and learn every aspect of senior care or bet on someone you can trust to run the operations.

But still just a levered bet on continued appreciation in the Bay Area rather than income producing asset.

This property needs to be on a schedule C or E.

BUT rest assured Not all stories are terrible or there wouldn't be tons of people doing exactly what you are researching. 

@Erik Hitzelberger Am I correct in stating that 40212, 40211 and 40210 (seeing as they aren't included in your assessment list) would be classified more as a warzone area than a C- or Fringe area?

You will also have to decide on its taxation status (C or S corp, Partnership or disregarded).

Chances are if you succeed in using this strategy successfully the best asset you will acquire is a "C" or "D" location small scale rehab in a zero barrier of entry market that will only sell to another investor and any equity that might be shown on paper will never materialize to an actual gain.

If a property management company that manages in C or worse areas did not have bad reviews, Id assume they were not doing enough business to trust what I was reading.