The cynical part of me says that he doesn't because he knows he would be putting HIS assets in harm's way, since the Feds can seize the property in which it takes place - so he'd rather put YOUR assets at risk.  I

A less risky option would be coming into an existing renewal zone and paying slightly more elevated rates than at the ground level but with the reassurance of more investors supporting the renewal momentum. 

I recently pulled this off with an 8 unit, but it’s risky for the seller.

Is it too risky? 

When investors in general view a market as being more stable, you aren't going to see cap rates like they were in 2014 or 2015 when the market future was more unknown and risky.  

It sounds like a good money move if the rental property is looking risky from a CAPEX perspective in the first year.My solution - I hope the furnace continues running for the remainder of this winter giving me another 8 months to save additional capital for the eventual replacement.

If it was THAT risky there would be almost no landlords as the stock market would be safer correct ?

@Kaitlyn Bjerk I think you might be biting off more than you can chew with a full gut job as a new investor, This can be pretty risky and it's quite easy to underestimate your rehab costs.

Does better to you mean less or more risky?

"Good investment" and "sustainable" (depending on how you define that) probably don't go together.Up-front cost, value proposition, and factors that aren't under the control of the owner.