I have no problem with it IF you are paying for it out of Schedule C or E.

It's a bet on how you think Silicon Valley tech will do.

Bet on your mutual apprectiation  (I made that term up) Dont forget talents, dreams, constraints, and gratitude.

I know the area isn't the best (I'm guessing C or C-) and most of the tenants are on some type of government assistance (he said not section 8).

This rate was from a very large national mortgage lender.I hope that I never see rates like that again, however I would not bet on it.The next property that I bought which was about 4 months later, was owned by a real estate broker, who had used this house as a rental.

There are C or "junk bond" areas that offer the potential for really high returns but the likelyhood of achieving those returns are much lower, and possibility of negative returns are higher, as it will be a rougher area with rougher tenants. 

Sounds like a C or C-neighborhood to me.

If an A lender bank doesn't give you a mortgage go to a B,C, or D lender (private money). 

I would rather bet on myself than fund my Edward Jones guy 5th week long vacation since June.

And prices over there are so low there is certainly potential for appreciation, but I wouldn't bet on it.