In gambling, this is often called the "rake" -- the amount the house takes in an otherwise zero-sum game (think poker).It's possible to make money when buying individual distressed assets because gains can be in the triple digits; but when making macro-economic bets, I'm skeptical that anyone can "beat the rake."

I gambled that if those agents were really there, they would probably not shoot an unarmed man, who was only hoping to get home.

Sky-high rents on uncontrolled apartments, because desperate renters have nowhere to go -- and the absence of new apartment construction, despite those high rents, because landlords fear that controls will be extended?

What friend would a person be to tell you to throw caution to the wind and gamble a large sum of money that they have little knowledge on, or in your friend’s case a bad experience?

His worries:-if I build on the land during the lease, I could end up losing the property in foreclosure if the owner defaults-I put too much money down as a option fee, he feels I'm gambling -there isn't any wording in the contract on who will take care of structural problems i.e.: roof leaks/replacing he basically looked at me like I was an idiot, until I told me-I don't plan on building on the property before I own it, the seller is giving me the paper work to talk to the city and see if the building was viable.

maybe it was from the old days when the husband would go to town and gamble and lose the ranch. 

an old saying when you go to Vegas is "don't gamble scared", which essentially means make sure you have enough money to bet big when the odds are in your favor….i would modify that quote to fit RE to "don't invest in RE scared"…have the nest egg at the right size before you jump.  

I do not think this is a gamble as you defined above, on the contrary, if you ask the right questions and vet the operator thoroughly you should not have to fear this calamity as you proclaim in your statement. 

You would be gambling big time!

@Jay Dean - @Kevin Wang is correct.Income less expenses is NOI, or Net Operating Income.NOI less mortgage is your Cash FlowUnless if you force major appreciation or gamble on market appreciation, selling a rental after one year doesn't make a whole lot of sense.