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Updated about 1 year ago on . Most recent reply

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Jeffrey Richard
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39
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Risk of using leverage?

Jeffrey Richard
Posted

I'm in a position where I can using leverage over and over to buy more properties.

There would be cash flow in my area because the properties are not expensive however they do not appreciate much and the cities around me are dying and not growing.

What would be the risks of using leverage to buy an extensive portfolio?

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19,200
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Chris Seveney
  • Investor
  • Virginia
16,798
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Chris Seveney
  • Investor
  • Virginia
ModeratorReplied

@Jeffrey Richard

In many of these areas while it appears on paper these assets will provide cash flow there is the possibility they do not due to the type of tenants are typically lower quality and have payment issues, properties need more maintenance and upkeep etc

  • Chris Seveney
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7e investments
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