That cashflows is a safer bet than you're gamble that the market will go up and you can maybe make money IF you sold it at the right time. 

Investments are ALWAYS a gamble - any investment that claims to be "Zero risk" is always 100% scam!

It doesn't mean it can't be better, but it is gambling. 

That said I am a cashflow investors and not looking to gamble for appreciation.

(Cashflow from other investments make this possible) They invest following the macro and micro trends and don’t gamble on gimmicks such as guessing where Amazon’s next HQ is going or where the hurricanes just crushed a market.

You can gamble that someone else is going to come along and give you more.

If you like to gamble, roll the dice and hope for appreciation before the ARM resets?

AND FOR SURE you nailed the 450 to 500 a year insurance proforma.. got to squeeze that extra 50 a month out of the cash flow so you can say you have a 10% return LOL.. in certain areas it works in these areas of super high risk for all things.. its a gamble and I guess that's why they call it insurance just like 21 at Vegas.

All you have is a appreciation gamble.

So, an REO can be a real gamble.