Without any rational support for prices like cash flow, things could blow away like a puff of wind.That's not to say things won't keep going up and by sitting out you'll miss out on the fun (greed).

The first 2 batches of Mohave county has ended. I won nothing. I noticed that an institution bid a lot of liens down to 2%. I don't get it and hope people here to give me some clarity.

These liens are in the ...

I have been looking for a strip mall/ shopping center in my area and am not finding any below $3M that are priced based on cap rates or any obvious rational calculation.

The 2% and 50% rules are quick and dirty assumptions, your debt coverage ration is a quick assessment, your average market rents can easily be obtained for a property.

Having that been said I do think I can create a coaching/mastermind program which does add an incredibly higher amount of value to others than it costs them and still have it be profitable, but without the other benefits it would be very hard to be able to rationalize doing something this crazy!

It's hard (or impossible) to rationalize packing it up, so they just won't (can't) get around to packing it up. 

They require things to be rational.

Drives me crazy dealing with them because there's no way to communicate rationally with them, even if they're flat out wrong and you show them. 

Institutional investors have gotten into sfrs lately but they're dealing with the same issues only on a much larger scale (see my BP blog post here for more on that).There are economies of scale such as volume pricing but more importantly as you move into CRE you're dealing increasingly with professionals and the pricing is driven by the numbers, a much more rational valuation basis than sfr pricing based on "comps".

Regardless, I recommend not letting the excitement of a deal overwhelm the rationality necessary to close a profitable deal.