Should I incorporate before buying condos in a bad area of Atlantic City?

No, you should have your head examined before buying anything anywhere in AC. AC is a pit, and it will never get any better. Bringing lower middle class gamblers into a city with no economic backbone does nothing. It creates a walled little enclave of pseudo-fancy resorts, with the rest of AC still a sludge bucket, unfortunately. Gambling was not the answer for the beautiful and hard-working people of AC.