If someone has the money, he/she can buy a few properties for cheap and rent them out (probably make more in rent than the mortgage, if they take out a loan), no?
That very much depends on several factors, including:
1) the original price of the home and the "well being" of the neighborhood therein. Oftentimes, high mortgages and property taxes can nullify any perceived gains.
2) rentals are seen as income (whether they break even or not) so they are not eligible for the same refinancing opportunities that one may find with a residence.
3) rentals, depending on the home and the tenants, aren't always low maintenance. There are ways to let others handle this for you, but that taps into any revenues as well.
All in all, in desirable locales (e.g. SF Bay Area), unless a property was snatched up pre-2007, many landlords I know are not breaking even. Finding "deals" from foreclosures, or severely depressed areas, were the main recent opportunities for many (IMO).
