That option has always seemed kind of scary to me, and too much of a gamble.

Charles, I also gamble when investing in stocks.

At that point, you are not risking or gambling, you are taking sure bets.

I used to gamble and was pretty good at it, especially blackjack  / 21. 

In theory, PMI shouldn't be necessary if the underwriters gamble on the right applicants.Of course things happen.  

I pretty much was gearing towards this anyway but the gems that was given there just ignited me even more.

It's a 50 cent gamble so it's worth trying.

I know I could theoretically force appreciation through basic value-add improvements, but I'm just scared that theirs a ceiling on those neighborhoods and if I take the gamble with 15k in rehab, that it will never appraise at 100k.

I try not to gamble with my investment money or my clients investments and can usually identify a good deal in a very short period of time.

You lower your own equity investment and thus you:- Increase your IRR- Lower your own personal risk if the project goes southIt's easy to make money when you're gambling with other people's money.