I also bought 2 acres of raw land in WA state that was a good location on a highway, and gambled on having to get tests done, etc.  

Worth the gamble in my opinion.

He became a devout born-again, ditched all his gambling buddies and started spending all his time in church.

I guess the main reasons I’d want to keep the house are 1) ego - to be able to say “I own a rental property” and 2) hope for things to magically turn around and one day sell for profit (gambling...)What would you do in my shoes?

Someone bought a property in a certain neighborhood for the characteristics of both and now that’s changing.

I see it as a form of gambling. 

You're gambling for a chance of appreciation with lesser cash flow.

Drugs, gambling, prostitution all pay in cash (I have had all the above submit applications).

And blue chip markets that increase in value in the long run due to their intrinsic characteristics, while difficult to get into, will give you a better chance of securing future returns. 

I think I could pony up and tough it out in a less desirable area if I had a feeling the neighborhood was “coming up”, but I’m not sure South Dallas is or how long of a game it is, so I think that’s why it feels like gambling.