Be Careful If You Are Overleveraged

[Russell Brazil]

Many of us experienced folks on the forums the last couple years have been expressing concern about people being overleveraged and for strategies like the BRRRR method. Myself, @Jay Hinrichs, @Alexander Felice, @Joe Splitrock @J Scott (Who Ive never been able to tag in almost a decade on here) I know have all talked about leverage, risk and caution.  Im not saying this to say hay, Im right, and everyone else is wrong, whch is true btw lol, but to say that if you have the ability to raise cash, do so now before your tenants stop paying their rent.  Its going to be at the very least, a bumpy few months here.  I dont see some great economic collapse, Im not a doomsdayer or anything of the sorts. But the recession is here, and we are not easing into it.....we are hitting a brick wall at 100 miles per hour. 

If you have marginal tenants in c/d class properties, expect that some will not be paying their rent with a moratorium on evictions in many places.