Long term, I hold widows and orphans stuff, low beta, typically 3 to 4.5% dividends and some high quality mortgage funds like Romspen. My income is 3.9% of current value. I can borrow at 2.5% and have used those funds to add to my investments. That boosts my yield from around 12% to near 20% My rule of thumb is 50 % leverage. I’ve never looked at things like debt service coverage ratio (DSCR)
What do you do? Any suggestions for leverage guidelines?
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