What should I do with my LOC?

[Masa Don]

Wow does this story hit home! So . . . as real estate investors "we" are arguing against overleveraging . . . however one of the MAIN purposes and advantages of real estate investing is leverage, thus where is the thin line? An example was given of 65% I am only three years into this real estate investing thing however that seems like a great way to miss out on some great deals! At the same point 100% leverage sounds like a suicide pill! Where do you guys think the magic leverage is?

On that same note, I have a property that I purchased for 130, they say is valued at 230 (YEA RIGHT!!!!) I took a LOC for 84K. I am planning on using that 84K for my next unit, granted I don't think in these times you can even get to the point of 100% leveraged, but if the market continues to plummet then it sure is possible. What would your advice be regarding the LOC, only use for emergencies? Use for downpayement on the next couple places? Use only as fix up costs? Close it out (I would never do this but you never know)? What do you think?