To twist Will Rodgers advice on buying stocks, “Don't gamble; take all your savings and buy some good real estate and hold it till it goes up, then sell it.

Upside down lease options are always a gamble, and you are the one gambling.

I'd rather gamble with no history than take sketchy history.

So kind of confused on if I am holding my criteria very high OR some folks just like to gamble their money into these investments. 

@Angel Gutierrez that reports cites an increase of money spent on gambling as a contributor to defaults on mortgages.

If they want to redeem, it has to happen within those 120 days.During that time is a gamble for the investors who own them.

Basicaly your saying  put more in at a lower rate of return and then gamble on appreciation??  

As far as risks, I'd rather take the 10 years of certain cash flow with moderate appreciation over gambling on equity increases.

No, because a) that might be their luxury/vice item for all I know, which is 100% fine if it's viewed as a luxury item that they just really personally enjoy and gain happiness from (it's much less harmful than other vices, like drugs or gambling!)

It's a little bit of a gamble for both of you, but I think a fair one.