While the crime, and types of crimes may not be ideal, you're most likely going to be buying buildings are great discounts and with renovation, will be creating large equity positions for yourself based on other renovated buildings.

From a federal tax perspective, there isn't a difference in whether you hold the property through a single member LLC or individually.As @Matt Motil mentioned, it comes down to 1) asset protection, and 2) financing.Most people will point out that you can largely protect your assets with adequate insurance. 

Replaced the line with Pex and good to go.Another tip: I checked with my local water company and they had a form I could fill out along with a copy of the repair bill that I submitted, and a few months later they credited me a portion of the large bill back.

Regarding whether it's a good play depends largely on your goals. 

I currently live there and was wondering about using the house hacking method to convert my 800 sq foot basement into another large bedroom/ in law suite.

Not every section 8 voucher holder will have a large enough voucher for this max price in every case.

I believe the RE investors will not need to take a reduced profit for an increased expenditure that is likely to impact such a large percentage of the market investors. 

@Joe SplitrockGreat thread, Joe, great contribution, @Matt Williams.I can only imagine how the bitterness builds up working as a sub for a large flooring contractor who sardine-packs your schedule and tells you that putting in fast, just-good-enough floors has to be your highest priority as long as you sub for him.

They're all fairly large cities and as such will have areas that range the full spectrum from A-D.

I'm a long time Real Estate Broker, and Property Manager (any Large So Cal Properties need management, get in touch with me please) @!