It's too dependent on changing weather, government subsidies and the commodities market to be a good bet.

Section 8 is a government housing program run by Housing and Urban Development (HUD) and is administered by a local housing authority (HA).

And the latter of which is highly regulated.  

Cleaning up the county government is a much saner (if seriously challenging) way to go, in my opinion.  

As for extra costs of owning in an LLC, you will have to account for the cost of maintaining your business entity with the state and local government along with complying with any state or federal tax reporting regulations.

Such fees are generally regulated by state law, you can't just make up some big number as a deterrent. :) 

The local government decided to give away free homes to individuals and businesses that are interested in a unique fixer-upper.

Dan, first, I have no clue as to what is required in India, unless someone here is from there I'd take those questions to your local authorities.Mortgages are pretty much exempt from SEC as they are regulated elsewhere, that doesn't mean the root of the instrument is totally dismissed as a bond. 

Or rather my advice is "live there a year, work with the locals and government....then don't." ;)

Just check (and obey) your post-great recession state regulations.