For many people the word leverage means risk in the dangerous sense.

Especially after the credit meltdown of 2008, mortgage debt and leverage took on negative connotations. Properly used, leverage introduces a perfectly acceptable level of risk and increases the investor’s return on the property. This is called positive leverage and is desirable.

Investors seeking to use leverage to their advantage should focus on buying properties with strong cash flow and in areas of stable rental demand. Using these criteria when selecting an investment property will mitigate risk by helping to ensure that there is adequate cash available for not only loan payments, but also for any unforeseen expenses that might arise.

Invest Amarillo’s properties have both large positive cash flow and enjoy strong, stable rental demand that is typical for the Amarillo, Texas real estate market. Learn more about The Amarillo Market.