BRRRR and Overleveraged

[John Krapf]

HI all,

I'm new to the BRRRR method.

I own two properties in CA, and want to expand. I'm Currently reading the BRRRR book from bigger pockets. How does one amass a large portfolio while hedging against being over leveraged. Obviously you need to buy good deals to make it work, but I'm used to California where property values only go up.

I understand the term "over leveraged" to refer to situations where an investor has borrowed more money than the value of the properties. It seems one downturn in a market could instantly put an investor upside down. I'm assuming as long as rents are covered you just ride it out and diversify with a few properties per market?