It could appreciate but I consider that gambling.

Betting on appreciation is always a gamble.

Your friend the seller's gamble is that he'll be able to sell the place for his asking price in As-Is condition.

. $3000 to $10000 houses are probably in the part that never will, but maybe it will it's a gamble. 

Otherwise it seems more like gambling than investing and I am not a gambler.

Try looking at: Why the BRRRR Method is a Risky Gamble for Out of State Investing

Like everyone mentioned, betting strictly on appreciation is a gamble. 

I thought it was an extreme gamble, and that he could lose everything.

also don't get sucked into the offers on the internet  for cheap money those are 99.9% scammers off shore looking to get due diligence money out of you

Then they have to go back on the market and unless they do get a cash offer (which idk about your market but in mine it's a gamble) then they are still looking at 30+ days plus any days on market before receiving that.