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Updated about 5 years ago on . Most recent reply

User Stats

67
Posts
15
Votes
Douglas Curtiss
  • Investor
  • Connecticut
15
Votes |
67
Posts

BRRRR...Debt to Equity

Douglas Curtiss
  • Investor
  • Connecticut
Posted

I'm interested in starting a longer term portfolio of rentals using the BRRRR strategy. My concern though is by pulling equity out of each property, I'll eventually have 5, 10, 20... properties all leveraged. Of course I would use the calculators to make sure they would cashflow well and that the mortgages would be paid down. My concern is if the market takes a downturn and the mortgages go underwater. If the properties are cashflowing, one can ride this out to an extent, but I would be stressed to have a ton of debt in a down market. So I'm curious what other investors use as a rule of thumb for debt to equity.

Most Popular Reply

User Stats

67
Posts
15
Votes
Douglas Curtiss
  • Investor
  • Connecticut
15
Votes |
67
Posts
Douglas Curtiss
  • Investor
  • Connecticut
Replied

@Kevin Sobilo, finally had a chance to read your response.  I think I like that approach.

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