CalculateRealEstateROI

Wealth Building

How should I think about debt in a real estate portfolio?

Debt is leverage — magnifies returns and risks equally. Stay disciplined on LTV.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Direct answer

Debt is leverage — magnifies returns and risks equally. Stay disciplined on LTV.

Expanded explanation

Healthy portfolio: 50–65% portfolio LTV. Aggressive: 65–75%. Dangerous: >75%. Bias toward lower LTV as portfolio matures.

Examples

  • Year 5: 75% LTV. Year 15: 55% LTV.

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