Yes, Greg.
Some people do.
But the thing that really limits you is "prims"
You have only so many prims per bit of land, and a piece of furniture may have - say 12 prims. Or it might have 50 - those are the primitive elements that all objects in SL are made of. If your land has say 126 prims, on a small piece, you will use it up very fast
So there is a whole science of low prim building, which I enjoy a lot. And new technology recently is sculpted prims, which are very exciting and I have yet to explore - needs Blender but those appear to be displacaement maps on a base prim block - say a set of stairs on a large cube These appear as complex (clientside I think) 3D objects ingame and don't eat loads of prims.
A good friend did have lots of houses to rent out to people in SL, but it is very hard to make any real money out of property rentals, unless you spend a great deal of time and real money. Apartments are even harder because of those prim limits. Each apartment has to have enough prims for residents to set up their furniture - unless you rent it ready furnished. And most people don't want that.
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