You gamble the building will be OK with whatever you agree to and Seller gambles your deal is better than what else could be had, or not.

@Richard Gamble and everyone else.  

Andy, I'm not asking for an inflated or fraudulent appraisal.

This could be deemed to be a violation of the Uniform Fraudulent Transfer Act.

I like the huge tax advantages and passive income, BUT, even though you are drilling in areas where oil has been found it still seems like a huge gamble to come up with nothing.

That I could quantify the value of paying a little more early in the gentrification stages, that property went up in value over 100K the first 18 months of possession.What's going on in this area of Indy I can't seem to quantify it other than some people are buying $40k - $80K properties, tearing them down and building new, some are doing gut rehabs with a change in floor plans, and some are buying the $60k-$90k property putting $30k into it and renting it out in hopes of the spike.When I see the land for these lots are valued at $4,000 - $6,000 depending on lot size, that's a big gamble to teardown and scale that $40k - $80k property purchase to the $250k - $300k properties that are being sold on some of these deals.

Those that advocate doing so 1. don't know what they are talking about, 2. attempt to do so as a financial gain they are not entitled to, & 3. may not be aware of the tax issues and matters of fraudulent reporting of income and expenses and lastly, the owner is allowing a tenant to acquire an equitable interest in and to the property leased.An option given conveys an equitable interest to the extent of the option price paid and that interest is amortized or depreciates over the term of that option as the rights to purchase are consumed.

Gambling on appreciation is just that, gambling. 

@Eric Carr I think it's the property holding pattern while gambling on the hopes of that long-term equity growth is the problem for many people. 

You make the money when you buy, not sale the car; similar to when you choose the tenant out of several applications, your good tenants must be screened when they come to view the property.Regardless, it can be a gamble sometimes.Best of luck!