Or are private/HML investors willing to take gambles on new investors with no experience?

Let's say that you buy a little old lady's house for $100K when you know it's worth $200K and you immediately wholesale it to your friend for $150K. 

@Eric Gamble We were beat to the deal.

@Mike Dymski  UGH I saw this play a few times.. over the decadesHey we will buy it because in 2 to 3 years this will happen.now I think everyone knows that I am an appreciation guy... but that mind set is really gambling in my mind.. maybe not quite as bad with these low dollar rents.. but I have seen guys already in our market get stressed thinking 1800 rents and the build cost to either build new or reposition rents need to go to 2200 and that did not happen.. thereby caused stress to the partnership and in a few instance lenders getting tough as the loans are not meeting DCR's..  

They are all paying about the same rent, so I am assuming that the landlord didn't want to bump up the old lady's rent and didn't want disparity between renters so they kept it low. 

@Diane Trotter @Julie Macd  @Charlotte Moore Thank you ladies, I have 1 more question (might sound dumb).

So tell me how do you deal with the " hoarder " house that is owned by the deceased lady whose daughter lives in Florida and cannot afford to " deal" with her mothers home? 

ok so, this lady is asking 90, but the house is been on the market for 3 months in a very hot market, but this micro market is not so great bc of the location as being perceived as the ghetto. 

Depending on the rental market there raising the rents could be a gamble.

It is a gamble but it's my passion.