Leverage and recession
I am a new investor with the goal of purchasing a duplex to houseHack in 2019. After hearing the latest episode (#311), it was advised to leverage as little as possible with the possibility of an incoming recession. My plan is to find deals that could survive a potential drop in the market and increase in vacancy. I do not know how to limit future leverage, since I have limited cash. How do you recommend a new investor reduce their leverage in a potential recession? For instance, should I use larger down payments?
I hope that makes sense, I appreciate any input. Thank you!