Updated about 9 years ago on . Most recent reply
leverage
Can anyone explain the pros and cons to using my first rental property as leverage to purchase another rental property,
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John Thedford
#5 Wholesaling Contributor
#5 Wholesaling Contributor
- Real Estate Broker
- Naples, FL
If you talk to someone like Ben L he might tell you that leveraging less than 140% is foolish:) Leverage can be a great way to increase holdings and build wealth. That is definitely a pro. There are other concerns. Your income. Your DTI if seeking conventional financing. Your cash reserves, and more. Remember, the guys that got taken out in '07 were the ones that were leveraged to the maximum. Leverage is a great tool if used wisely.