I am pretty sure it would not even cash flow at 5% ($7,000 down).Now if you thought it would double in price in the next three years, that's a different story, but not one I would gamble on. 

I'd let him be someone else's gamble. 

I was confident enough to offer $10k non refundable upfront as a show of good faith but my partner said that I can go to the casino if I want to gamble :-) Since it is my first property of this size, I listened :-) Also I'm not sure if $10k upfront would have been meaningful.Let's see what happens...Jean

I am not gambling on appreciation, but cash flow talks the talk.

Do they usually allow inspections of the properties prior to a written offer, or is this one of those situations where I'd be expected to do my due diligence at "arms length" (drive-by, internet research etc), and take a gamble on the condition of the property?

Thats simply gambling on a hunch.

you say Your partner/friend knows the neighborhood and the risks and is willing to gamble.  

I agree to all colleague requests unless they look like spam.

You would be hard pressed to find properties in the 60 sq ft range which  are in your own backyard There is nothing like mining your own neighborhood and investing for both cash flow and appreciation Study you local market and I be you will find both types of properties that would be much less of a gamble then venturing into the unknown 

This is to reduce spamming.