CalculateRealEstateROI

Risk Management

When should I deliberately deleverage my portfolio?

When portfolio LTV exceeds 70%, when rates reset upward, or when cycle indicators turn negative.

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

Direct answer

When portfolio LTV exceeds 70%, when rates reset upward, or when cycle indicators turn negative.

Expanded explanation

Pros pay down debt or sell strategically to reach 50–60% portfolio LTV before downturns. Late-cycle deleveraging is the single most protective move.

Examples

  • 75% LTV → 60% LTV via selling 2 lowest-cap properties.

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