It absolutely is. However, on average real estate, even when leveraged, underperform markets.Also remember that in some cities it is cheaper to rent and in some cities it is cheaper to buy. If it is cheaper to buy than rent, I would consider buying, provided I was planning on `settling down`.If I wasn't, a house can be a huge burden. Moreover, leverage is one of the keys of real estate investing, but it is high risk, if you aren't a professional. Here are some strategies and examples that have worked for others in the past:Example 1 - Asking Price u00a380,000In the UK and elsewhere, cheaper houses in run down areas often have better yields, Letu2019s say you need to put down a deposit of u00a320,000 pounds.In addition to the u00a320,000, you may need to pay fees to lawyers and for surveys, which will probably cost about u00a31,400-u00a31,600. Stamp Duty would cost around u00a32,400. It is % for first time buyers on cheap property, but 3% on buy to lets which cost u00a30 - u00a3125,000. Houses costing u00a3125,001 - u00a3250,000 is charged at 5%, and the rate goes up to a maximum of 13%. The UK system is similar to many other countries which have sales taxes on buying property.Finally in terms of costs, lets say there are some basic refurbishments that cost u00a3900-u00a31,100. The total cost including deposit is u00a325,000. In the UK, in an inner city area such as Manchester or Stoke on Trend, such a property may rent for u00a3575 per month based on houses in a similar area/price range. Getting u00a3600 is possible, and if you target students which is risky as it is a smaller population who donu2019t always look after housing, you can get even more if it works out.But letu2019s use the u00a3575 to be safe. From that we need a mortgage for u00a360,000 at 5% interest, which will cost u00a3250 a month. Management fees and insurance should come to u00a3135, as an allowance for repairs at 10% of rent is fairly safe.Now letu2019s imagine that the property is vacant for 2 weeks a year. 1 month every 2 years or 2 month every 4 years. With all these rental figures and costs, we end up with a yearly profit of about u00a32,200, which is a return on investment of 8.8% per annum. Longer-term if you get capital gains, the returns may be higher.If you keep buying a new property like this every 18 months, and you do it for 15 years, you will have a yearly rental income of u00a322,000 after 15 years. By year 6-7, it may even be possible to buy 2 properties a year rather than every 18 months, given the accumulative process of building up capital.This example shows how leverage can work in property. If somebody buys 10 properties with this method, they would have spent u00a3250,000, delivering an income of u00a322,000. If cash would have been used instead, it would have only be possible to buy 2 properties, which would produce a yearly income of u00a310,200.Example 2There are other strategies when it comes to real estate investing, including buying a cheap run down property and spending a lot making it over. This strategy though, is most effective for people who can do the work themselves, and therefore save on some of the fittings costs.Another strategy is to rent out a property to multiple tenants, especially in professional areas such as Milton Keynes or other commuter towns. Letu2019s say you buy the property for u00a3190,000. You would need to spend u00a37,000 on stamp duty, u00a310,000 on start up costs, u00a3220 on repairs (10% again) and u00a3593 on a mortgage if you get u00a3142,500 borrowed on 5%. Now letu2019s say you have 6 tenants paying u00a3370 each, so total monthly income of u00a32,200. This gives a return on investment of close to 17%, adjusted to costs.But it is hard work compared to a REIT or S&P and Nasdaq tracker fund!