If you're going to buy foreclosures at an auction there's going to be some aspect of gambling involved.

You are gambling in an arena with a hefty anti.

I do know that with this being my first rehab,it’s a gamble.

Its a gamble but most things in homes are. 

Either  1) You have the money to be cashflow negative (including mortgage) for a hold and flip with appreciation (gamble) 2) If you had the skills, you could find fixer-uppers and flip or improve equity and hold (safer) 3) Or you could be new developments that are ready in 1-2 years and flip them which I have done quite successfully.

This is perhaps a larger gamble.  

We love the area (for potential appreciation, for access to Shaw nightlife, and for the more authentic feel of the "historic" neighborhood).

It could appreciate but I consider that gambling.

@Andy Rousch Branson is like old-people Vegas in the Midwest...except instead of gambling they have an excess of theatres, and amusement parks hahaha.

At that point you’re almost gambling on what interest rates and the local RE market is going to do.