., slumlords would normally not participate in government-subsidized programs such as Section 8, due to the requirements to report income and keep properties well-maintained

Neither the US borders nor the borders of the countries with outbreaks.I do advocate the US government funding research into cures and preventatives.  

Just as the government has national security secrets and such are limited on a need to know basis, there are areas of banking and lending that are off limits to those not having an operational need to know.

I met a real estate agent here in New York that told me she got her down payment for free from the government for her first place.

The simple reason is cities and counties need money to pay for fire, police, government, etc.

Etc, etc.Urban homesteading ended up failing because governments got greedy.  

The government also offers pretty good job security for many people, so as you said unemployment is relatively low.

Due to the many regulations I want to close these strictly with an attorney. 

The court must first determine whether the optionee has equitable interest, and that all newly implemented procedures regulating placing a lease to own tenant have been followed.

However, it's not the wild west, business transactions are covered under federal laws, the Uniform Commercial Code (UCC), Security Exchange Commission (SEC) are usually the most applicable to real estate investors but there are various federal rules, regulations and laws that may apply.