It could appreciate but I consider that gambling.

It’s pretty much a calculated gamble at that point.

Understanding the numbers as mentioned in the other posts (ARV, Running costs/expenses etc..) is literally 50% of the battle and the difference between successful deals and just being another annoying guy spamming emails to buyers..I would learn what the numbers look like in your respective market and get info by shadowing your local professionals like contractors and experienced agents.This industry is about adding value, thats how you succeed.

All joking aside, you take a gamble when you don't buy renters insurance. 

It's cheap enough I could afford to lose it all, so it seems like a worthwhile gamble.

The gamble you are taking is will you get market value on a sale if you don't permit the conversion?

When initially contacted her she immediately said "I'm not interested in owner financing" before I even brought up any potential terms - so I'm sure she's been flooded with folks just spamming her with texts and emails not getting to actually know her and was sick of being asked.

Check your spam folder.

Increase in value over time, loan pay down by renter, depreciation can shelter some income.No margin call, no "Gambling" on picking one stock over the other--Roulette.Banks will lend to you to buy real estate--but not to buy stocks--(if stocks were superior--it would be the other way around). 

I suppose the thought might be that the program will help to upend that cycle and create wealth, but that seems a heck of a gamble.