While it's still rough, it's not far from improving areas and revitalization efforts.While that was definitely a factor, it's still a gamble if the city improvements will translate into appreciation for me.

If you needed 1 year of appreciation to get back in the black, I’d say it’s worth the gamble.

Stock market is gambling in the short term.

If you are outside those areas you are taking a bigger gamble.

To answer your question, millionaires in So Cal (for example) don't mind gambling on continued appreciation in their own backyard (because meantime, they can afford the negative cash flow). 

If you were to try to sell that property tomorrow, you'd basically lose money.If you want to gamble for the appreciation, thats one thing.

Owning in FL is a gamble for hurricanes no matter what, so you might as well put a little money each year into insurance in case a hurricane does hit.

Leverage is fine, but gambling is not.

plus tenants in Las Vegas are not the best anyway so I want to have rentals where people are more about family instead of drugs and gambling..

Also, counting on appreciation is more like gambling than investing.It sounds like you have lived in this place for 2 years and have owned it for at least 5?