Tia - I think you're going through the correct rationalization.

5 - Rationalization...the most expensive work in the REI vocabulary.This is NOT a good deal.

Can you give me some rational behind your thinking?

im having a hard time rationalizing putting 20% down of my capital to get a couple hundred in cash flow per month...

The market does not HAVE to do anything or behave rationally.

The old 24/36 ration for residential loans is on the prudent side but FHA can take you to 50% and in cases higher, there are always compensating factors.Blatant statements` like closing a CC account will hurt your credit is not true, if that's the only card you had and you cut off your ability to borrow and establish credit you won't have established credit to be analyzed, but if you have other credit established it won't effect your history, further, if you lessen your ability to go over a prudent debt amount, closing an account can benefit you in that analysis. 

Rational vs Emotional choice:Quick answer: Go with the Arm.

Personally I don't think this group is very responsible or rational at all (the people who use) and so I ended up at the point where I told him he really didn't know anything about running a business and didn't have a right to tell me how to run mine and that I was done arguing with him about it, that I had other work to attend to and that if he didn't like what I had to say that he could kiss my *** and I hung up and went back to work on my flip project I was standing in when he called to argue.

It is quite rational for a business to strive toward monopoly, as monopoly rents are extraordinary.

It pertains to sending people to a lender that knows what they're doing and is likely to exercise rational judgment when qualifying potential buyers.