I just finished Dream Big which is more about the mentality of good managers but it has a lot of great rational behind it.

We, as humans, are not one-bit rational beings. 

Originally posted by @Joe Splitrock:Unfortunately there has been too much rationalization of poor decisions with statements like, "everyone needs a place to live".

Timing the market indeed doesn’t work but you don’t have to do it if you know what you do.I’m amazed to see that many real estate investors will buy real estate rationally but can’t seem to be able to look at stocks the same way.To simplify, when looking at the property, you look at the price and you then determine the value.

Speaking from experience:People often have deep-seated views of money that are not rational (in the sense that you can explain the facts of an opportunity and reason out the best course of action). 

But you need a model to follow or carefully depart from, and a series of rational explanation for why that model works.

The more money you lose, the longer it takes you to get to a profit because it means more losses you have to recover first...and, you have less (and less, and less...) money to get there.Ego and Rationalization are the two most expensive words in the REI's dictionary...so NEVER use them. 

That is just an excuse that a lot our society uses to rationalize their decisions to spend more money and buy nicer things they don't actually need.  

It can't be rationalized by using emotions...it has no emotions. 

I have doors in Memphis and Detroit and I only target properties with a rent to price ration of 1% or better.