The use of financial leverage when investing in real estate is a double$-$edged sword. Increasing the financial leverage used to acquire a property:

increases the riskiness of the equity investment, which should increase equity discount rates.

decreases the riskiness of the equity investment, which should decrease equity discount rates.

increases the riskiness of the equity investment, which should decrease equity discount rates.

decreases the riskiness of the equity investment, which should increase equity discount rates.