If you plug a hypothetical $1 million property into the BP buy and hold calculator and use average rations (3% for everything) you see that you can generate another million in 7-8 years.

If so, how is that rationalized as a multi family unit? 

I also rationalize using the funds because I was fortunate (and wise, but mostly fortunate!)

We are not rational decision makers

Losing money only puts you further away from making a profit...and to do that, as a willing, conscious decision, is a decision you will regret down the road.There are no mulligans in REI....and to rationalize it by saying you are learning is not (I'm trying to be nice here) smart in any way. 

All other “reasons” are just rationalizations.

You have tried to rationalize this with bad math .

I guess for the rational its down to how much you value your time(like you said), how patient your upleg seller is, and how badly you need the cash flow.

Then, you rationalize a bad deal into a good one.

You priced the rent based on emotions:A - Rationalized the added sq ftg in bsmt would bring bigger dollars.