And everyone talks about the BLM (government) land keeping things in check but there's still so much unused land.  

HUD is a government foreclosure.  

given that you're in California, you might also be able to get the NHF Platinum Program's down payment assistance grant, assuming you don't make too much $$$.  

I also bought 2 water heaters on sale awhile back just before the government required more insulation on the tanks. 

You have a lot of options with all the programs out there.

I've never heard of this program but I am certainly interested!

I personally find sec 8 a difficult program to incorporate within what I want to do as a landlord and am not interested in the program, you can either choose to or not to.. you can search many posts here on BP about sec 8 .

I've read through CA taxation code, section 3172, and it seems that the only encumberances that would remain attached to the title would be government encumberances, judgement liens, and mechanics liens.

But all returns go tax-sheltered to the IRA.A Rollover as Business Startup (ROBS) plan will be the program to evaluate.  

If you have FICO above 650 there are low interest rate programs as long as the property values are high enough.