It is/was a tax haven for the rich. Like you said, you need to incorporated to make it work at all.
Magic Johnson was/is? one of the largest section 8 housing landlords in Los Angeles. You MUST have a property management company handle shit for you, or you will be married to property full time. My sister worked for the property management company that handled Magic's stuff. Section 8 renters know "renter's rights" forwards and backwards and you need someone that knows them just as well on your side or you'll get eatin'