Undoubtedly, some banks will not do that, but either way is speculating.

This is all speculation of course without knowing the property at all. 

I have seen some revitalization east of 71 hwy but for me, it's still too speculative for my current conservative investing goals.

BIG is speculative because we all have very diverse portfolios and niches within the real estate world.

Are you an investor or a speculator?  

I suspect every market at the top end of the list is a historically high appreciating market.As for those that believe expecting appreciation for a well researched market is speculating, why is it any more speculation than expecting cash flow returns to not decrease? 

Some do but seasoned investors call that SPECULATING and not investing.

Maybe you could add some context with a real property to your scenario.Part of the reason BRRRR kills new investors is that they can't grasp the concept quickly enough that you need to buy at extreme discount, have a conservative renovation, then get a generous appraisal...its a trifecta to work perfectly...very rare.One failure of your assessment above is that you are presenting a residential property...so, comparable sales method is your appraisal method (period.)...and that is completely dependent on market conditions from one six month window to the next....assuming your market will produce value is speculation and it's an assumption of risk many folks can't stomach. 

Maximizing profit is exactly what the Realtors, lenders and investors/speculators have done in a rampant fashion, and back to the original question posed by the OP- thats the root of the problem you speak of.

I'm saying the American middle class is trained into a very high expectation that they must be paid for their work, to the point where it becomes incredibly difficult for them to do any work on any speculative terms for which they are unsure of the terms of payment.