BRRRR risk in market crash

[Arhum Nomani]

Hi all,

I have been using the BRRRR method to grow my portfolio. One question I had was - Regardless of location, what happens if the market goes south due to political / cat event / bubble activity… and house valuation decreases. Even though you may be able to overcome the gap with constant renters, you run the risk of being over leveraged if you have 70-75% LTV on multiple properties. Usually, the lending is in the same country  as the investment, so in this instance, it could be the bank or lender being in trouble causing you to have your margin called. 

Just looking to get some feedback on this as I have been mulling over "worst case market home prices crash scenario" as I continue to grow my portfolio through BRRR-ing

Thanks in advance!

Arhum