It's a bit of a gamble.

It is EXACTLY the same as if you throw mailers in the wind and where they land they will land.It is A GAMBLE!

Even when young and could not really afford it, I would not hesitate to buy a new car, knowing full well that financially it was a bad deal.Taking a risk on a RE investment was just too much of a gamble - why, because it was different, it was not the norm, that made it scary.Even when I had plenty of capital to back me up, it was still difficult to make the first buy.I still suffer from analysis paralysis when looking at properties - that's probably due to some fear still existing.I'm still a relative newbie in the REI world, but every day it's becoming a little less scary.

@Patricia Thomas,A lot of realtors will not work with investors, unless they can show a proof of funds that they can verify at the bank not one of the fraudulent proof of a fund's letters you get of the Internet.

Now, if you want to gamble a bit 'cause it's really a nice place, I'll buy the place subject to at a higher price, if ole Boyd gets to closing on time as agreed under the option, well, I lose the premium I paid and I'll need to sell it to him at that price....but, if he fails to the second (be'n the good ole boy he is) then I just keep the place and he'll need that stool.Fausto, not so close to Wayne, he'll get splattered, little more back towards you....that's good, right there, KA DING thanks.Speak'n of ole Wayne, he's on to someth'n there, a good Option Contract IS a purchase contract, in fact, you can go by a purchase contract and just take out all that default malarkey that nails the buyer if'n they don't buy the place.

Those both seem rather big gambles as opposed to hedges... but hey, each unto their own. 

There would definitely be a knowledge gap in switching/adding something new to your portfolio, and bigger gambles could mean bigger losses in the event of a mistake while learning. 

If the seller doesn't have the deposit, that is fraudulent.

Owning a property for a year is a tough gamble, since you pay a lot in selling commissions, etc so breaking even is tough. 

Nicely done.it the thought process that we see on BP   IE   Cash flow is everything and appreciation is gambling and i don't care if I ever get appreciation as long as I get some cash flow.