So, look at the functional analysis as well as the numerical analysis before doing anything.

I figured that I could afford to gamble about 30K and that it was a gamble...what I didn't figure was that it would end up costing ALOT more by the time the dust settled.

While I use the 1% rule on most of my purchases, there are numerous other factors that need to be considered.

The concept is somewhat similar to the Kelly criterion from probability theory, which defines the % of your total bankroll you should be investing/gambling in a given proposition to optimize your profit and minimize your risk of ruin.

That's a gamble.

I guess banking on rental appreciation is the same as banking on equity appreciation its what everyone on this site calls gambling.

There are a number of reasons for this but it would take numerous paragraphs to explain it.    

I mostly blame my naiveness in humanity and eagerness to get the project going.. here are many of the items (not all):All 3 HVAC units went out in the first 3 monthsBoth "high end" endless water heaters died within 6 monthsThe 1918  LEAD pipe entering the home burstSome lighting was found to be battery operated instead of electricUnfortunately a rock from DC water entered the piping which resulted in multiple cancelations and major repairsNo insulation between the upper and lower unit resulting in numerous noise complaintsPitch incorrect in back yard which results in floodingPlumbing piping incorrectly sized throughout homeAll gas lines removed and everything replaced with electric to pass city inspection easier (only house on the st without gas)Oh yeah, furnishing a two units that can sleep a total of 16 people is not easy nor cheap (especially with a puppy).

If money wasn't automatically taken from peoples paycheck for gambling in stocks with outlandish PE ratios today, and no real business in 2001, I doubt they'd sit down the weekend after pay day, shop for stocks, and place buy orders.  

It could appreciate but I consider that gambling.