This is a heck of a gamble.

For $50 a month, you are really taking a gamble on not getting the 3 showers a day tenant like @Colleen F. talks about.

Unfortunately you just have to pay it or walk away from the idea of getting clear title as you have no grounds to stand on in these situations as you ARE subject to the first mortgage at the least.It is a legal form of gambling and not for those that aren't prepared to lose everything they spend on these deals. 

Its a gamble but my thinking is I need to get the property for the lowest possible price and I never want the seller to accept my first offer because that tells me I offered too  much.   

This deal sounds too good to be true.You might be thinking "$500 isn't that much money, maybe worth the gamble".  

Betting on appreciation is just another form of gambling.

Trying to time the stock market, or trying to pick individual stocks to purchase is just another way to gamble.

Dinesh, I actually found you right after I bought clever investor today.I took a huge gamble because I am currently living paycheck to paycheck to support my girlfriend and 10 month old daughter.I am hungry and ready for a change.

At the same time, there comes a point when you have to take the gamble and jump!

is he just gambling?