That's why the metric of 25% more than long term rents is just not a good rule of thumb.

In other words, do you rationalize a bad deal into a good one by finding a different metric than the one you should be using, because the metric you should be using doesn't work?

It isn’t a strong metric to determine if they will not act foolish and trash the place.Overall:(1) Visit the neighborhood.

What are your metrics for your LTR's?  

Underwriting has changed abit with the metrics but still decent as long as the deal pipeline flows.

If you are concerned about tracking metrics that closely how about just asking them when you talk to them? 

Seeing what areas have good cash flow, good appreciation, low vacancy rates, etc. in order to line up a potential investment with your goals and metrics. 

I saw a news blurb recently that was attributed to Zillow which said their metrics had Big Bear:...As the “most popular vacation town.”

The more important metric an investor should be looking at is rents over time. 

You didn't mention the amortization schedule being offered 15,25,30, how long the rate is fixed, recourse or non-recourse loan, any pre-payment penalty, loan costs to close with lender and legal fees, etc.There are lot's of other metrics besides just the interest rate that place a role in a decision.