There was sacrifice back home, through rationing and people worked well over 60 hours a week supporting the war effort without complaining. 

As for the rational obviously you are dealing with someone that has not respected their financial responsibilities, has lost their home, and is likely very hostile.  

You get maybe a 5% return on your cash  in todays market and reduce your ROI to what most rational investors would view as ridiculously low. 

@Peter Sanchez, I understand the moving IN part, and I understand pro-ration.

It's almost impossible not to get political about this but I'll try to be rational. 

Most tenants are normal, rational people. 

By walking away and using the same money on a more stable investment rather than a rationalization of potential profit.

I can rationalize that clients make their own beds and that I am acting ethically but if I know the odds are against them and I offer the product anyway... that's seems unethical despite being perfectly ethical.

Does this sound like a rational approach, or do you think i am missing something?

It's that you'll inevitably at some point over the next ___ year be shoveling more money into the deal.Cash-flow positive deals are a little easier to rationalize because you're sinking "profit" (quotes intentional) back into the property with the goal of hopefully higher returns.