Thanks for the explanation, @Brian Burke - that was exactly what I was looking for.Indeed, my example was unrealistic in several aspects but I did so to try and reduce the number of variables in play and to ensure that my primary question wasn't hidden in the noise.Your explanation of the psychology behind the difference makes a lot of sense.

OK, enough dissing of your home market, but I would really like to understand the psychology of overpaying for multifamily, as I sure see a lot of it going on nationwide.

Certainly a large percentage move since election in the long end of the curve and lowest rates might be gone but a lot is market psychology and expectations of higher inflation which might or might not occur.

I've hosted topics such as Investor Psychology 101, Working with the MLS (and how to maximize your agent), Why investors buy rentals, Investing while working a full time job, how to fund your investment projects, mortgage acceleration, etc.  

Once again this post is not meant to be unethical, just want some good pointers dealing with the psychology of the mind and how to create opportunities.

I studied Forensic Psychology in college while working a variety of food service jobs.

Since I don't know what the psychology will be of my first tenets, I will need to be opened to try either approaches and see what would happen.  

I personally buy in psychologically depressed areas, that I see value and other's don't.

Remember they are super skilled to press psychological buttons to make you increase your credit card balance and then make you really want to buy their course.

I believe in the psychology of it.