You can ask your CPA to research if there have been any court cases with your fact pattern to see what can be done.

I've had my realtor help me identify 2-3 zip codes that are considered B-C plus neighborhoods and continually sends me daily or weekly MLS listings but they either get weeded out because they are located next to dump properties where no one on the block has any pride of ownership or the are located next to factory or some other undesireable property.

Macro perspectives in real estate are good for identifying trends but for most investors on this site, they are participating on a micro and level, one deal at a time.  

First, identify what remedies are available to the town, when any such remedies can be implemented and the likelihood any such remedy will be implemented. 

@Brian Mackey599 with collections = no go. 700 with open collections = no go. 825 with open collection = no go. 599 with no collections and a clear pattern of good habits = giver.

It is definitely profitable to invest in multi-family in Los Angeles if you are able to identify the right property. 

He has a pre-identified buyer that wants it. 

You will begin to identify good deals and have confidence to accurately price an investment position that works for you.

When it comes to Realtors, they will help you identify which areas of town are good to invest in and what to expect in rents, quality of tenants, how to analyze deals, provide you with investing opportunities (both on market and off market).Besides figuring out what your goals are, how you want to get started, and meeting like-minded people, the first action item would be to talk to a lender.

If it's a pattern of bad behavior, if he makes excuses and tries to cast blame, or if the story is sketchy, then no.