CalculateRealEstateROI

Risk Management

What's a safe maximum portfolio leverage?

50–65% portfolio LTV is the resilient zone; 75%+ is fragile.

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

Direct answer

50–65% portfolio LTV is the resilient zone; 75%+ is fragile.

Expanded explanation

Compute portfolio LTV: total debt ÷ total value. Above 75%, even modest valuation declines wipe equity. Below 50%, you're under-levered for return optimization.

Examples

  • $3M debt / $5M value = 60% LTV = healthy.

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