Real estate can be a great investment because of the leverage. You can buy a 2-4 unit building with 10-20% down (even less down if you go owner-occupied). If you buy in a coastal city, with strong rental demand, your property will probably appreciate faster than inflation. Between 1975 and 2013, we have seen 7% annual appreciation in the Los Angeles area. If you bought a 75K property in 1975, it is probably worth over 1M today. If you put 20% down, and realized 5% appreciation, that's about a 25% increase in equity each year. Other benefits include cash-flow, tax benefits, and principle reduction with each mortgage payment (all of which are less meaningful than the appreciation).
The other thing that should interest value oriented investors is the highly durable nature of the assets you own. Demand will usually remain consistent or grow over time. In most coastal areas of the country, rental demand will continue to be strong 30 years from now. Also, your biggest expense (debt service) can remain fixed while your rental income increases each year.
The worst part about owning rental properties is managing the tenants. Unless you have a background in law enforcement or debt collection, I suggest that you consider a good property manager. It's always a good idea to manage your first building for about a year or two just so that you get that experience under your belt.