To be clear, a recession could occur, home prices could fall, cap rates could increase (and multi-family prices fall), banks could tighten lending standards, etc, but right now, market participants are making rational decisions based on the information they have and cash flow can service debt without relying on rent appreciation. 

The worst thing you could do is rationalize numbers that don't work into being a great deal.  

Better to just follow what all the other sheep are doing without bothering to apply any rational thought. 

I went for one refinance and they told me the loan made my debt/income ration too high. 

I think your rationalizing a lousy deal .

I miss Ben Leybovich's posts on this subject :) good job on saving your investors' capital and not letting the "getting the deal just to get it" cloud your rational mind. 

People who mention they are interested in looking into other types of investments will be open-minded enough to discuss REI further and weigh the pros and cons and potential risks rationally without being immediately dismissive.

Thanks again for keeping me grounded and rational!

@Douglas Mcqueen  Actually, I have found (developed) a number of ways to make deals happen...that are NOT just rationalizations of bad deals. 

To do it right, you can't rationalize negative cash flow (yes, if you are covering any of the other tenant's rent, then it is a negative CF) by saying you are living upstairs for less (or free).