I am running my numbers calculating IRR at 5, 7, and 10 year holds when making my decision. 

What he thinks they are worth is irrelevant and paying more than they are worth simply because they will still cashflow is irrational thinking.  

It is irrational to think you can afford a home of your own if you are not in a solid enough financial position to qualify for financing.

They deal with the emotional aspect, which is the hardest thing to navigate because it is irrational. 

This includes rent growth, occupancy, other economic vacancy factors especially concessions and bad debt, exit cap rate and interest rates.Assuming that is the starting point, we then create sensitivity tables that forecast IRR at various combinations of EGI vs. exit cap rates, and various physical vacancy versus exit cap rates. 

Robert Schiller, Yale econ. prof author of "Irrational Exuberance" wrote the follow piece in the NYT yesterday.

No irrational exuberance.  

Originally posted by Julian Jasso:- declined a short-sale offer- not paid mortgage in 2 yearsI usually try not to judge people because everyone has different circumstances, but this looks like a major case of irrational behavior.Like others said, check and see what it will go for at the trustee auction and if no one picks it up, wait and see when it turns up as an REO.

I think we all know the rational and often times, quite irrational fears people have about ANY sort of mold in houses.

But I have seen equally irrational behavior among some Colorado counties that refuse to have open bidding, and sell the large majority of properties without competitive bidding via a lottery style approach, effectively cheating the County of $50,000+ in over bids a year.