Leverage, debt, and knowing when to stop?

[Jim Stardust]

Is there a formula for real estate investors to know how much leverage or debt they can take? I recall there's a commercial debt coverage ratio but does it apply to real estate investing? When would a person know they've had enough leverage or debt or they risk default if they take any additional risk?

[Jon Klaus]

Originally posted by Financexaminer:

Originally posted by Jon Klaus:

Bryan, how do you calculate value for the properties you've owned for a good while?

By Aguestppraisals Jon, that way your always in the black.

HeHe, a method popular even with some bankers 6-10 years ago.