So... there's a gamble here for sure.

It's a little bit of a roll of the dice (the $1000 to get it on) but real estate involves calculated gambles sometimes.

That way if you buyer performs you will get top dollar between the first sale and the renewal, without the investor having to gamble on an unseasoned loan.

(maybe if you only plan to own this a couple years, you can defer your Capex items and get a Class C property to cash flow better, but it is a gamble)

I would say buying to break even initially is better than pissing the money away gambling or going to the bar though for sure.  

It might come back next season but its a gamble.

You would be the one that eventually be taking the risk of trying to sell the property @ that appraised price or higher later.If the property appraises for less than you paid you could pay him off now, betting that it will appreciate in the future or the value could go down.Either way it's a gamble.  

It's like going to the casino.You play 3 hands, and you may come ahead, but if you gamble all night, the house ALWAYS wins.The larger your sample audience,  the end result will always normalize to one constant.

:(No they believe that cash flow is the only way to make money in real estate and investing in high dollar areas that have little to no cash flow but good chance of appreciation is gambling.. who ever came up with that one should be shot.. the big money is made in appreciation over time..  

They are just salesmen pretending to have your best interests while they gamble with your hard earned money .