The gamble is of course I pay the payment out of pocket during turn overs.

You could always hope you'll see some appreciation, but from what I have read doing so is a gamble at best.

Or are private/HML investors willing to take gambles on new investors with no experience?

Lots of cash buying in the area.I have also seen some financing buys that must work out to be pure equity/appreciation gambles in that area.In the event that you DO fine a price point that works you will likely have to compete with a favored cash buyer.

@Eric Gamble We were beat to the deal.

@Mike Dymski  UGH I saw this play a few times.. over the decadesHey we will buy it because in 2 to 3 years this will happen.now I think everyone knows that I am an appreciation guy... but that mind set is really gambling in my mind.. maybe not quite as bad with these low dollar rents.. but I have seen guys already in our market get stressed thinking 1800 rents and the build cost to either build new or reposition rents need to go to 2200 and that did not happen.. thereby caused stress to the partnership and in a few instance lenders getting tough as the loans are not meeting DCR's..  

Depending on the rental market there raising the rents could be a gamble.

It is a gamble but it's my passion. 

That area is a big gamble and a lot of things would have to happen for that area to really turn around.  

If you're purely speculating on appreciation, there are better cities to gamble your money on.