Banks often don't act "rationally" until you understand how they work.  

If I rationalize myself into a bac deal, away from what the numbers tell me, I lose.  

So, if you have 100% forced appreciation now, but the yield on the cash invested is, say 10%, then, the longer you hold, the closer the total return will come to 10%.So, if you're a purely rational investor, you probably sell.However, it's important to consider a few other factors:1.

I was contacted by another lendor saying they do as low as 580 Credit score if I have good income and low credit debt ration which i have both.

Also, lenders will look at your debt ration when you try to get a new loan.

Rational. 

Bottom line is the banks I'm working with like having these loans on the books and continued to offer them thru the last bubble burst in the late 2000's.Still, playing the "what-if"/"worst case scenario" game, I finally rationalized to myself that if it came down to it, I would just sell the property if the lender did not want to renew my loan for the remaining term when the balloon came due. 

I suppose a rational question is what made you execute when you traded then?  

We have water rationing in California and with 20 acres, I need more water for trees, etc.  

the lower the number of units the harder it is to get a cap rate. for example in California in a desirable area a fourplex could go for over a million dollars, the ration in many case do not make sense. only because the buyers are looking at the quality of the neighborhood.