I was able to look at my spreadsheet to quickly see that the project was running underbudget and I was almost done, so I rationalized spending the extra amount to really make that part of the kitchen pop.  

If there weren't dopes like Fannie and Freddie to buy crap paper that rational bankers would not have bought for their portfolio we wouldn't be in this mess to begin with.Gridlock is good (my apologies to Gordon Gecko).

I would just try a rational conversation to see if you can get it cleaned up. 

It didn't have enough equity to make selling worth it and back then the rents to sales price ration was much sweeter in my area than it is now.

Deposits, leases, pro ration of rents.

I am in the Berkeley this weekend... what you need to realize is that NOTHING that you would think is standard in Livermore ( IE SF BAY AREA) will be standard out in the mid west.. at least as it relates to 90% of what these folks talk about in the way of cash flow rentals.. its apples and oranges.. your in a triple A market not even A.. and when you read on BP about no appliances etc. those are C D some think B  but its not a California B most of the homes and the RENTERS would  be a CA F plane and simple.. no way for you to rationalize what you would have in Livermore and what is standard in the mid west...

investors to get out there and overpay for properties, thereby denying opportunities to more rational investors?

Rock or Rambo with macho attitudes and lack the ability at times to act rationally.

I think any rational person would just prefer to buy beautiful, pristine homes for pennies on the dollar if given the choice.

In my experience, it's not a rational attitude and the only way you can counteract it is with education.