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14
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Vic Hartounian
  • Glendale, CA
3
Votes |
14
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Invest with Leverage or no leverage for rental income

Vic Hartounian
  • Glendale, CA
Posted

I invest for cash flow...

Every pro advises to leverage...

I get it when the market is going up. How about when market is at the top or almost there.

Isn’t dangerous to invest with leverage ? Just like the gains are multiplied the losses could be multiplied!

Any thoughts?

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38
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52
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Andre Debs
  • Westchester, NY
52
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38
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Andre Debs
  • Westchester, NY
Replied

The key is finding the right balance between leverage and security. Not OVER-leveraging, running your numbers conservatively, and having sufficient reserves should mitigate a lot of the risk of leverage during a market downturn. 

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