Most of the homes we built on these lots sold at a profit, but a couple did not, again, because of the reasons above. 

They usually have a small upcharge on the work done but it's generally not a profit center for them. 

Rentals also build equity through tenant payments and appreciation, with profits taxed at lower long-term capital gains rates when sold.

Since you missed the 2 out of 5 rule, capital gains taxes might take a chunk of your profits, so consulting a CPA would be smart to understand how much you’d actually keep.

It's not just the taxes, but being able to at-a-glance look at expenses by the month and year, profit and loss calculating automatically, and even cash flow by property and total portfolio by month and year.Thanks for suggesting it!

.- It's not profitable for them to search for under-market priced houses, figure out repairs needed or what other problem is pushing the price down and do even more for a newbie investor that has analysis-paralysis and may never buy anything.Some questions you'll want to share the answers to with any agent you choose:1) Are you paying cash or getting a mortgage?

There is realized gains & profits, and UN-realized gains and profits.

A sage person who responds often on this forum said, "Airbnb insurance is a profit center for them". 

It's the safest way to start and it's a guaranteed profit when you get the right deal!

So back to being a real estate investor: the only way to be one is to buy a property and create value out of it, whether through finding a below market value house and selling for a profit, or renting and creating cash flow.