The problem is that they are gambling and if they are inexperienced or under capitalized to meet the obligation in the event of problems... you end up having to foreclose to reacquire a property that is likely poorly maintenanced if not trashed.

Thanks Eric - in the UK (we are Brits so we know the market and how to do business out there pretty well)

Here come the turnkey operators stating that everyone investing in CA is gambling and can’t cash flow if their life depended on it

You are free to gamble your money as you see fit on your vision of the future. 

I take risks, I do not gamble on appreciation. 

The balance of 20% would be paid after you have received fund in your account...Expecting to hear from you.Regards,John HagenNordveien 43B, 1359 EIKSMARKA,BÆRUM, NORWAY.Crichiebank Business CentreMill Road Aberdeen AB51 5NQ UK

I've never been a gambler, but a calculated risk shouldn't be seen as gambling. 

We are currently looking at duplexes with 4br 2ba, and it seems that historical utilities combined for these if the owner pays are in the neighborhood of 300-400$ a month.It definitely is a gamble in Northeast Ohio to take the time to install additional meters to pass on the fees to the tenant, but you are right that if it means I have to lower rents to compensate its a wash on income and a negative on the expense I accrued due to metering.

I guess it's a gamble unless I can get inspectors and contractors to look, as well as the utilities turned on for due diligence.

These investors are banking that they'll make their money back through future appreciation which can be seen as speculation/gambling not investing.