Their point (which is very rational) is that without equity you have limited exit strategies and if Plan A doesn't work out, you're S.O.L.Other investors will point out that if you have appropriate cash reserves you can deal with the vacancies and repairs that can otherwise cause catastrophe for low/no equity investors without cash on hand.

To a rational person, it is utterly insane that she is letting it get to this point.  

Your aunt may be mentally incompetent to make rational decisions.

The closer you get to 100% equity, the more money you are losing...exponentially.6 - Adding properties for CF is the correct way of doing it, but the focus should be on the CF...not the number of properties, and the only fast way to do it is by selling the properties at specific trigger points.7 - There is a step by step system you need to follow that will get you exactly what you are looking for, faster than you think, but not by thinking (rationalizing) that losing money on properties is OK since you are learning. 

Popcorn removal decisions on older units (potential asbestos and proper handling versus cost and potential moral decision: basically I rationalize letting the contractor deal with it even though I know at the cost quoted he is not properly disposing which the environmentalist in mean realizes I am just rationalizing).This property was purchased with modest expectations on return and so far it is our second worst performing property (the worse being our ex-home). 

Tried banks already and no go. because of my debt to ration problem. 

Like I said look up the Case Number and go for it if it actually is a good deal, but just keep me in the loop and the rational behind it so that I can learn.ThanksRobert

It's internally consistent and rational, given that context. 

Don’t you dare rationalize it by saying it’s a 2% Loan  when the real issue is the thing won’t be worth crap in 5-6 years and you probably could have actually made 50k on it had you just invested into real estate to begin with !

Money obviously is not a factor.The one option I see no rational for is keeping it as a rental if you move.