They tend to have affairs and gamble.

I don't want to gamble that I'll be able to rent it out at the higher rate.Thanks Frankie, At this point I can't tell if there is any value add stuff, because I've only seen the outside which looks alright.

I also gambled on very bad section 8 and lost thousands.

.$10k/year in negative cash flow verses your appreciation....your gamble and your call.

Lending is the blending of the correct numbers to please the underwriters and salesmanship of the borrower to show that the enterprise will be a success. 

Comparatively, a duplex anywhere near Sydney is around $1,000,000 and rents for around $4,000 per month — no possible way to cash flow so you’d be gambling on appreciation.

I am in full agreement that a positive cash flow is a very important goal, due to the fact it insulates you from gambling on appreciation, equity, and rent increases. 

I took the gamble that possible mold remediation in the basement and structural deficiences wouldn't be a greater than $75k issue. 

I can only assume its located in a rapidly appreciating market where investors are willing to suck it up for a couple of years and let price appreciation do the hard work for them (always a risky gamble in any market).

@Jane A.Stock market is more like gambling on hoping that your stock improves in my opinion.