I don’t think it would be a gamble per say.

If that is, say, 40% for his combined state and federal rate, he will end up earning a whopping 3.5% x (1-0.4) = 2.1%.Are you seriously asking someone to gamble his home and accept 100% of the risk, for a 2.1% return on a loan to someone who has no real estate experience?

It's like gambling your paid off house away on a penny stock and losing it all.

When their lease runs out you can gamble with someone else I guess.

Based on some quick Google searches sounds like 5 should be sufficient for the square footage of the house but at the end of the day it's just a gamble because it can be in one sheet but not the other 4 on the wall. 

Now, one can gamble and say "I think unincorporated enterprise does not mean SMLLC's". 

If you love risk and the idea of being cash poor gambling on the fact you won't need the money you can spend it all. 

(in other words there is a gamble to it).Will it bring more rent--probably not--unless it's dated (pink tile, 1950's sink, 1980's cabinets, etc...)Here are some pics of bathrooms from Apartment complexes.

It's absolutely a gamble to assume prices will go down and a costly gamble if you do not get in the market. 

On the other side, deals that are negative cash flow deals and your banking on appreciation are closer to gambling than I like.