Leveraging!

Here's what leveraging means in regards to investments: Borrowing money! for use in an investment (something that grows in value over time). Most people that use leveraging use it in real estate.
To illustrate what I mean here's an example:
I take a loan out from the bank to use it on a let's say duplex (a two unit apartment building or a condominium!). Something in the vicinity of 500,000$ 30 year mortgage at 4.7% locked in for 5 years. Lets say that's around 2000$/month. So at a interest/principal ratio of 80%/20% in the first 2 years of your mortgage you pay a total of 38,400$ to the bank and only 9600$ to the principal of the loan. So therefore as a consequence after those 30 years have passed you end up paying around 800,000$ back for you'r loan, or somewhere around there. Here's where leveraging comes into place. Instead of just living in that duplex you rent it out to let's say at 1500$/month for each condominium. That's a cash-flow of what 3000$/month - 2000$/month (mortgage which will decrease). That's 500$ in you'r pocket after you payd all utilities and monthly property tax. Consequently you might include utilities in the cost of rent! So you split the 500$ that you have left over into two 250$ for a mutual fund and 250$ back to principal every month which will enable you to pay off the mortgage 5 or 8 years sooner meanwhile re-distributing you'r lowered monthly payment to you'r investments and mortgage. Pros: Yeah it's a great way to get started. You start generating income quickly. You end up with owning the real estate + have a monthly cash flow + additional investments fairly quickly. Oh between let's say 10 to 20 years. Cons: Midnight calls from you'r renters, utilities + property tax, Too much of a hassle to manage even if property will increase in value under favorable conditions, Takes a very good eye for value, A lot of paperwork, trial and error.