is there true profit in real estate?

Yes it is profitable! But you have to make sure you do the math before buying a property. For example, your 250K property may be able to rent for a higher price based on your market. You want to make sure you at least break even. if you break even, then it is like someone else is paying the bill for you while you have the tax benefits and ownership right. Even if you lose $100 a month, then you can think of it as leveraging your own investment money. For example, if you by a home for 250K and lose $100 a month, you still have someone else paying $900 a month toward your bill. After a few years you could sell the home and your profit would be the equity in that property that you only paid $100 a month to get. Does that make sense?

Now, being a landlord myself, I will tell you that it is best to start out small and not buy a huge property. What about a 1 bedroom condo in a nice area for 50-75K. You could rent this out and have a positive cash flow.

Also, always budget for the worst case scenario. For example, could you pay the mortgage on this property of you could not find a tenant for 6 months? If not, then you are not ready to be an investor. You should always have 6 months of cash reserves for each property as a minimum as well as a budget for any repairs that are needed.

Of course Real Estate prices can go down and you may not be able to sell it for a profit. Like any investment, there is a risk. But, I personally enjoy being a landlord. I am looking forward to buying another property soon.

There are many books about Real Estate. But, don't get sucked in to the get rich quick stuff. Do your math, start slow, and have a budget.

Another alternative is a REIT (Real Estate Investment Trust). This is a company that pools money together to buy properties. You buy shares and will receive dividends if they have a positive cash flow. Good Luck!