This structure increases risk because of the leverage being used—it’s effectively 100% financed.

To me, it feels more like a market that rewards patience, conservative assumptions, and knowing your market well.I wrote a longer piece laying all this out in more detail if anyone wants to dig deeper, but I’m genuinely curious what others are seeing.How are you thinking about leverage and underwriting heading into 2026?

Not  many people can afford $500k fully leveraged with today's rates and their accompanying debt.The right message to convey is how to position yourself-- eliminating other debts and increasing income. 

In the Ashcroft case, it seems like their biggest failure was taking on high-leverage bridge debt, which clearly in retrospect was a bad decision.

We have 25 years of construction, technology, and security experience, so we're able to spot properties with the most potential and get them what they need.What about yourself?

I feel we have some leverage now, before the lease expires, but unsure on what to do here.

Valuation suffers due to heavy leverage, negative EPS, and an office book that has become more liability than asset following NYC's lease termination at 250 Livingston.

One thing I’m noticing in this environment is that many investors are underwriting as if financing is a constant rather than a variable.If you assume conventional / DSCR debt at today’s market rates, this deal likely doesn’t clear a high bar.But if the capital stack is structured differently, the same asset can present a very different risk profile.The property isn’t always the constraint — sometimes it’s the financing lens that needs adjusting (not the leverage %, but the rate itself).

Curious how others are balancing leverage and reserves in today’s environment.

You’ll just have a higher payment, so make sure the new investments produce enough to cover that.If you keep saving, you’re missing out on leverage and depreciation opportunities, but it’s the safest path.Tax-efficiently, a cash-out refi or 1031 exchange usually gives you the most growth with the least tax hit.