It does however seem like quite the gamble. 

I would use hard money on the deal that’s the one in 1000 where the money is just so profitable that it makes sense but it would have to be a huge profit to be worth the gamble.  

Non-recourse means taking back the property itself is the only recourse the lender has in the event of a default, however, they will have a "bad boy clause" or "guarantee" meaning that if you do something fraudulent, illegal, or certain defined bad acts they will come after you personally for liabilities and deficiencies in the event of a default.

The stock market is a gamble.

Flipping is a gamble and takes a lot of hard work and knowledge.

It is a gamble.

So we had to take a gamble and accept the house without knowing if the furnace worked.

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.

Either way you want to make sure your insurance provider is on board, because if they would deny your claim anyway were something to happen you might as well not pay the premium and gamble your life savings.

This is why wholesaling doesn't work and why the stock market is an awful gamble.