Leverage amplifies returns when cap rate exceeds debt cost and destroys them when it doesn't.
A minimum stress test should cover: a 150 bp rate hike, 8% vacancy, a yearly extraordinary community fee equivalent to one month, and a 10% rent drop.
When the combination produces negative leveraged cash flow for more than 24 consecutive months, the deal relies on appreciation, not yield. That is a different wealth decision and deserves to be explicit.