Would you put 10% down to buy a $200,000 investment property?
There is very little difference. Leverage is 10:1 in both cases.
If the market moves 10% against you, your equity is totally lost. If the market moves 10% for you, your equity is doubled.
I don't think that most people understand the HUGE risk involved in such real estate investments.
The difference is....someone else is paying for the 2nd real estate investment loan, via rent.
I had a chance to buy a second home ten years ago in a resort community for $415,000. I didn't. It is now worth 1,500,000. Someone else would have paid off the note!