When does overleverage get you in trouble?

[Benjamin Sussman]

I’ve heard that people lose everything when they’re overleveraged.

When would you say people lose their shirt in RE investing, when debt to equity ratios are to high or when their debt to cash reserve ratios are too high? Or is it a mix of both, or something else?

Just wondering if owning 10 properties with 5% equity in all of them is a dangerous thing or if that sort of portfolio structure is fine as long as the investor has sufficient cash reserves?