But what you have right now is this irrational desire to BRRRR and those that are attracted to it tend to be newer investors with limited capital and want to get started and scale fast so they want to use their cash replenish and repeat.. this opens up huge opportunities for those folks who understand the mind set to step into that niche and some of them are just not good actors .. its pretty much daily you see a post now.. about don't work with this guy don't work with that guy.. and the one thing that ties them together is generally out of area investors trying to do 50k rehabs for 20k because the wholesaler told them that's what it would cost.. and come to find out its does not work.. and or the contractors are terrible and or flat out steal the money.  

Sometimes the desire becomes so strong that we act irrationally.”

Hard to do a full IRR at that stage.  

If he is well as I stated 20% is double or more than what we see as pref but can be in line with IRR at the end.on short term value add plays this is easy to achieve to really low.. difference of course is taxation. .one is basically ordinary income with no shelter .. but in and out in 18 months or less ( hopefully)  Or if it is MF  then i suspect we are talking about some pretty rough assets to get the purchase to rent ratios to throw off those kind of returns.

This may seem corny and irrational but are the ROI for relationships in high-school and post graduation worth it?

I have been in exactly the same situation as you, thinking about how to maintain some remove from potentially irrational tenants.  

Great points, thanks Joel.She is a semi retired lady, and likely will not want to spend exorbitant amounts of $ for this, but she also seems like the kind that is irrational (i.e. her anger may cause her to pursue litigation, even though it makes no sense).

Be wary, but don't make irrational decisions on a whim. - With auctions, due diligence should be done before bidding, but don't stop after you win the bid.

Now, I know that some of these authorities can be quite irrational (my city holding the dubious distinction of being THE prime example!)

When you think about mortgages like a combination of a loan and a ton of embedded interest rate options, trading down the yield curve in an historically all time low, flat, and rising interest rate curve is completely irrational.