Risk is higher mainly because it relies on your skill and intelligence to be successful in real estate.

The ultimate goal is to become financially free through this but I also want to learn and understand and make intelligent choices so I can maximize the returns. 

But in the same token the understanding of intelligently navigating that narrow truth responsibly is possibly all the more crucial in creating some version of financial stability.

Until people with back-bone stand up, support the concept of intelligent management vs "popular" management, turning off ___ politics and just talking to their neighbor, being an actual community again, choosing leadership by results.

If you've ever had to call for artillery, or air support, relied on quick actionable intelligence, or even sometimes getting critical administrative paperwork done; you've had to rely on strangers.

If you want to learn the basics so that you can carry on an intelligent conversation with them, I recommend this book:  https://www.amazon.ca/Accounti...

And if the seller artificially inflates the price to accommodate the improvements then they have a huge gain issue. 

I'm actually trying to help the OP, the best way to deal with this sort of issue is to have a conversation with the individual, figure out what is going on, it might be crazy for you to think but homeless people, are in fact also 'people', many are reasonable, intelligent and good.

This is an artificial supply constraint. - Suspending foreclosures.

First off, thanks for making an intelligent post.