CalculateRealEstateROI

Risk Management

What does a true worst-case scenario look like?

Job loss + 20% rent drop + 200bps rate reset + 1 capex event simultaneously.

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

Direct answer

Job loss + 20% rent drop + 200bps rate reset + 1 capex event simultaneously.

Expanded explanation

Pros stress-test all four together. If portfolio survives, leverage is healthy. If not, deleverage proactively.

Examples

  • Portfolio LTV drops 75% → 60% before assumed worst case.

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