They are discounted and sold for cash so that the money can be used to gamble, buy drugs or alcohol.

I am in a different type with commercial and properties being in the millions to tens of millions and up.Having said that I do have characteristics I look for in  buyers.I have learned over decades which type of buyers are optimal and that I want for my business.A direct buyer with a PFS statement showing liquidity and net worth and bank statements to start.

This sales analysis is used to determine total market value based on square footage, year built and other characteristics of the property.

I do not "take a chance" and I do not gamble.

Instead of gambling on a get rich quick scheme, learn to run a business that will provide income for you for the rest of your life.

I don't know the other varibles in your equation i.e. appreciation rate, age of the home, any other deferred maintenance, overall characteristics of the neighborhood, rent comparibles, ect...But my gut feeling is that with the recent fall out of the sub-prime market, this is the best time to purchase rentable properties.

The owner also refuses to expand in bringing in new alcohol, new music, more gambling machines, or new events. this would probably bring in $50,000 more each year.

It is certainly speculation or gambling, or whatever you want to call it.

So, I guess I am gambling on turning them over and not the income they produce (or fail to produce).

Are you a Gambling Man?