If you're looking at $50,000 or more in capital gains, it might be worth the gamble of not finding a suitable property. 

Pro:Appreciation , which is almost similar to CA market, and much better appreciation than US nationwide appreciation.No huge amount of tax when selling,etc,etc,etcCould match with lifestyle or "partner" choice"Much cheaper and return is worthed the dollarCons:lower cap rate than USA in general, even compare to CALeasehold vs Fee simpleCurrency depreciationNo financingI am back and forth investing internationally and US in last few decadeThe huge advantage of US investing is that, in general, even for CA perspective, home still so cheap, go to new zealand or UK to understand the concept of "expensiveness" of real estate LoL

This was a known risk you build into your numbers and now you wait and see whether your gamble pays off or not. 

There is no scam and I find it appalling that you want to deny math.If you can show how you get access to equity in your simple interest universe where the lender requires you to spend the vast majority of your monthly payment on your amortized mortgage to cover interest, I would be happy to hear how.Otherwise I suggest you stay away from the word scam - or maybe you read up on how houses in Australia and the UK are financed.

I can't imagine the bank wants to hold this property, or that anyone else is willing to take a gamble for much higher then I am willing to go with all the unknowns attached to the home. 

Consult your real estate attorney ...Also, see the article Vincent G. linked to.... or gamble your freedom and your investment portfolio. 

If you buy bad deals hoping the area will appreciate, you're still gambling (pardon the pun!)  

I assume as well that the less you do yourself and can rely on a company to do that for you the more money you give to those agents...Any way, there are things I am comfortable with doing myself, insurance, legal and tax, but contracts are a gamble wherever you are haha. 

You are doing a gamble play that value add and rent increases will eventually get the asset cash flowing.If it doesn't you just are trapped in a tax write off property.Some investors love speculating but I am not one of them.

It’s a gamble.