Understanding intimately the relationship between Leverage and Risk Exposure..is skill that wealthy pple have mastered..

I need an advice on what is fairly conservative ratio when it comes to leverage in real estate..especially in Kenya given the current economy upswing and inflation high pressure..

levarge has many variables, the most important being location of property, economic climate and the extent to which you can finance the property if things go wrong.

For Kenya a good leverage would be around 30-40%, as our banks are still quite conservative.

Prospects in Kenya look good for the next 3-5 years so making calculated high risk investments may reap great returns.

I don't see anything wrong with going for the three properties using a high leverage at this time, especially if they are income generating properties that can pay a large portion of the loan repayments. Try make sure that one of the properties you buy can be cashed out quickly, that way if things go wrong you can save yourself pretty comfortably.

Great weekend to you as well!