Still yet, a gamble, no doubt.

For instance if someone knows that there is a development planned for a couple years out that will severely increase the value of their property they are willing to take an educated gamble. 

If you are on the immediate borders of DC or near the metro- prices are higher vs living near Deanwood or Congress Heights Station...Congress Heights is a get in now before it's trendy situation....It will be the next hot neighborhood in 5 years, easily...I have been here 2 years and already would not be able to afford to buy a house in my neighborhood if I were buying today. 

Living in the border you are able to see the "rich dad, poor dad"  philosophy first hand. 

But for one, you're speculating (gambling) and in LA the properties would have to appreciate to freakish levels to let you retire.

You are essentially gambling with an ARM and that is not something you want to do.  

Otherwise, unless you know the area well, I'd say it's more of a gamble.

Although it's 30k under the list price, eventually someone might say yes.Are you saying that the average deal in California is either: 1) diamond in the rough, acquired by hard networking or luck, 2) requires appreciation to get a decent ROI (gambling?)

You live in one of the highest density city's in FL and you border another high density county.

., but over 80% of Canadians reside within 2-hours of the Canada-U.S.A. border.