Going into it I'm resolved to be rational and numbers-oriented on actuals but the T12 actuals are often misleading, plus it's hard to really know what kind of financing terms you'll get, and the loan terms can be the diff between 10% and 18% cash on cash.

It does not seem rational to put every house in its own LLC. 

They're still trying to rationalize staying, or they moved their investment strategy to the suburbs.  

Also, it's difficult to rationalize allocating funds to a retirement account which may yield 7-9% annualized when you could get 20% cash on cash in a rental property which also has the potential to appreciate.Personally, I contribute 8% pre-tax to a 401k and I also get a company match.

In the future, can I include a clause in my lease which stating something along the lines of "the teants must act rationally and professionally? 

o You're using the 'reality' of the best deal that you can find in DFW to rationalize an investment.

I considered my actions to be very honorable and way up and above what any other rational person would have considered to be considerate/human.   

RUBS (Rational Utility Billing)-- I'm not sure it is legal everywhere though.

We first tried a vacation home loan, but our debt to income ration did not work.

If they aren't comfortable paying directly to the landlord, for whatever reason, then maybe make it rent vouchers, like the old style ration vouchers you see on history documentaries :)