It's fine to invest hoping for appreciation, but counting on appreciation as your sole business model is gambling with all the risk but none of the fun.If you want to keep it, I'd consider using it for a vacation rental. 

That is a gamble.

Its the same as those that go to VEgas and call losing money gambling  as but hey " its entertainment" never got that one either. 

Retail also has its own characteristics and needs to be reinvented every decade or so to remain rentable and competitive.Industrial too is unique and has its own strengths (easier to manage) and cons (longer vacancies).Each type of commercial is going to require a different style and application of management.You should have a light understanding of the type of CRE you would like to own as you head into the market looking for deals.Personally, I prefer industrial because it's an easier asset to manage and I have a lifetime of experience working in this asset class.That said, and as mentioned earlier, if you head into the marketplace searching for a value add situation then you might want to keep your mind open to various types of commercial property.

I know you said they feel cashflow will increase in the future, but I would think thats a gamble.

They have a non refundable due diligence fee, but will give you a term sheet once they get your info and you can see what your gambling your due diligence fee on.

I am Imagine the loan of course would need to be small enough to take a gamble, but large enough to make other investors take a 2nd look.

It seems it's just gamble.

Weather from gambling, W2 job, or rentals.

It really doesn't look terrible, the contractors bid things to make money and not gamble.