Business wise it makes little scenes unless you speculate on appreciation but it is a indivulaes personal choice and I acknowledge there are many different investment criteria's.

Most experienced hard money loan originators consider anything above 70% to be speculative, because there probably isn't enough equity cushion to recover principal if a serious problem arises. 

Unless you have way more income than you will ever need from working in which case negative cash flow will be irrelevant and you can speculate on further appreciation.

Investing verses speculating.

No, unless it is purely a speculative appreciation play.  

If you by chance ever got this note to perform it would pay the interest rate on the amount owed plus fees and back interest .This is a highly speculative note with very little value General Note InformationProduct ID0019172Lien Position2nd Mortgage/Deed of TrustNote StatusNon PerformingBankruptcyNote TypeConventional# of Payments Last 12 Months0Paid To11/01/2009Loan Maturity03/01/2021Property TypeSingle Family ResOriginal Balance$11,400.00Principal Balance$11,204.95Est.

Everything in the future is speculation, but I don't see the area plateauing as you say.

It might rent for $2,300 but you might lose $12,000 on your first tenant because you have no experience, no education, and no game plan.I recommend you educate yourself and learn how to evaluate properties with real numbers, not speculation.

I know appreciation is speculative but they have already started on this project and it should be good for the neighborhood.

All because of the crazy speculation near that area, you now see horrible houses costing twice as much they should, and the margin to profit after a flip is getting compromised, because there is a "limit" that who is looking to buy a house there can really afford.