Im not suggesting anything about your intentions but it should be mentioned that lending is no longer comparable to gambling. 

Buying a property that you know would be cash-flow negative from the start is gambling on appreciation.

If you go into a deal with speculation of "appreciation" and that's your focus, then you are gambling IMHO.

This gives you a better chance to have enough equity to refi five years out. 25 year amortization would likely leave you "upside down" in five years unless interest rates remain at historic lows (not likely - never gamble!).

The gamble is of course I pay the payment out of pocket during turn overs.

I dont have the exact answer to this...but whatever answer you get make sure you do your own research as this is a very sketchy area...it runs right along the fraudulent line so you need to be extremely sure of the rules.

Also if the seller is attempting something illegal or fraudulent the agent must disclose and report.There are certain things that override the fiduciary to duty to a buyer or a seller as a client.

You could always hope you'll see some appreciation, but from what I have read doing so is a gamble at best.

Or are private/HML investors willing to take gambles on new investors with no experience?

Lots of cash buying in the area.I have also seen some financing buys that must work out to be pure equity/appreciation gambles in that area.In the event that you DO fine a price point that works you will likely have to compete with a favored cash buyer.