It only takes one of the three
credit reporting agencies — TransUnion, Equifax and Experian — to contain an erroneous or fraudulent piece of information (
such as identity theft or mixing up your account with someone else) to
ruin your
credit.
With this much leverage, your Debt Coverage Ratios can potentially get very thin, and multiplying this across an entire portfolio of properties financed in
such a fashion, the risk is very high that a confluence of issues with the economy / rents, large capital repairs, high vacancies, etc., can bring down the house of cards and
ruin your
credit for a long time.