Seasoned BPers have consistently advised against buying based on speculation that appreciation will occur.

Depending on appreciation was how people lost their shirts in the last market crash, so I definitely don't recommend that strategy (and speculation isn't really a strategy anyway).It's good that you were able to keep them as rentals as a backup strategy. 

He states their screening process is rigorous and he seems nice, but know this is speculative.

The property is a turkey as a rental.If you want to speculate on appreciation and hope the markets do not turn you might get lucky.

My understanding is that it is very common to have negative cash flow and to speculate on appreciation to profit.

Hi Tom, I wouldn't say you are dead in the water, and without seeing your tax returns I can only speculate, but a few notes before you assume that you can't get a traditional mortgage... 

Most of the big speculative money that is buying at these 3.5-4 caps are waiting for the rents to increase over the next few years. 

Generally our LTO homes exist in subdivisions where other builders develop and sell as speculative, meaning we are not developing the subdivision for sole use as Lease to Own. 

My view of holding any of their stock would be different if I were buying in as a non-agent, likely wouldn't be on my radar...but I'll have to balance that risk/speculative gain for myself over time as I'll at least have a hands-on feel for day to day operation, if not the big picture finances of the company. 

Again, I don’t know this deal from a hole in the ground, haven’t see the pro-forma, etc. so it’s all just speculation given what’s here.