What is positive leverage?
When the going-in property yield exceeds the cost of debt, so borrowing raises equity returns. It vanishes (turning negative) when debt cost exceeds the going-in yield.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.