It may depend on your situation. In my opinion, everyone needs someplace to live. Your "survival" as a real estate investor in any economy is a function of how you acquire the property and then your exit strategy. In general, the profit is made upon the acquisition of the property. If, for example, you were to pay all cash for the property, then your profit will be based on the rental income minus all expenses (tax, insurance, repairs, etc). Other factors that will improve your bottom line are Federal Income Tax credits and deductions. The building and its composite parts can be depreciated over time. You also may be able to get income tax credits for installing energy-saving improvements, although that credit is constantly changing with regard to what qualifies the maximum credit allowed. I hope this helps a little. Robin Carriger can better communicate the benefits of the Diamond membership and mentoring.