This is true - you get easy leverage, and your gains apply to this larger principal, however, if your gains average out to be less than your cost of capital the

This is true - you get easy leverage, and your gains apply to this larger principal, however, if your gains average out to be less than your cost of capital then leverage doesn't matter. Additionally, over the infinite timeline these computations and averages can look good, but your ability to make payments puts some risk premium on having large leverage. Over the short term, leverage can be much more dangerous, especially if you are forced by circumstance to realize gains or losses.