Well, of course - that's obvious - but most people in most places in the US are going to spend too much on their purchase because that's what's available.

That's my takeaway as well.   

Based on the info in your post, my recommendation would be to turn these assets into well oiled machines and max out their NOI.

The possibility of vacancy would also grearly impact the cash flow as well.

I now am more selective about loan officers as well as lenders. 

So I said, "well, if that isn't the path, what is the better approach?"

Check and reset them daily to remove the dead ones and reset the traps.Poison is easier and works well, but the mice die somewhere in the house and you may have an odor problem for a week or two.

It's crucial that this allocation is reasonable and well-documented to withstand IRS scrutiny.

Lots of people rent houses for parties as well, and you won’t be able to do anything about it.  

@Chris Faye i'd like to hear more as well