Real Estate can make sense if you purchase at the right numbers. Remember it's not just the profit you make monthly but also paydown of the mortgage that makes you wealthier. The typically rule of thumb is look for deals where you can rent for 1% of purchase price. Obviously in many of the hot markets these days that is impossible, but here are areas where it does exist. Typically midwestern cities but the downside there is they generally are stagnant or in decline.