Sometimes it works and they do very well and move the money into more solid markets with less risk and other times they lose their shirt.It's just like appreciation play gambling in Cali but instead betting on an area turn around play.Myself and my clients stay away from this type of product but there are plenty of others who find it attractive. 

Individual homeowner insurance is a gamble too. 

@Matt Sterling you took a gamble and Michael end up with the 8 that got away.

I'd imagine you'll do this just to find out if a LOMA is possible so it could be a gamble unless you've done research that other nearby properties have been removed from the FEMA floodplain.

Long shots are like gambling.

Flipping is a speed game, it's not too dangerous to project the sale price of a house 90 days out, but 3 years out is a gamble.

Until that happens, it seems to me that the average investor not willing to comb through 200 pages of disclosures are just taking a gamble by "liking the theme" and hoping that the underlying management company knows what they are doing and executes the plan well w/full integrity.  

BTW I don't think that higher interest rates is going to lower the demand for rental units.Waiting to time the market down turn is a fools game just like gambling on appreciation.

I gambled big back in 2007 and lost it all.

Otherwise it is a gambling not investing.