Effective debt management is central to equity returns, but excessive leverage increases risk exponentially.
Linneman’s treatment of leverage is the most practical in any textbook. He introduces the concept of and shows how a small interest rate hike (say, from 5% to 7%) can wipe out equity returns entirely if your debt service coverage ratio (DSCR) falls below 1.2x. peter linneman real estate finance and investments pdf
If you tell me you need the PDF (studying for an exam? modeling a deal? teaching a class?), I can point you to the exact chapter summaries or practice problems that would help most. Effective debt management is central to equity returns,
: Prioritize evaluating bad outcomes, as investors can always live with things turning out better than expected. peter linneman real estate finance and investments pdf