I purchased a 4 unit last year to start my business. I used an FHA loan so only 3.5% down and I currently live in one of my units. Was able to increase fees and rents by almost $100 so far. Looking back I would say it has been a good start.
Erik
Check out podcast #70 for an awesome no money down strategy. It is fairly advanced, listen to it a couple times. Listen to all the podcasts as a matter of fact and read the beginners guide.
@Manuel Angeles Welcome to BP. BP is a great resource to get started. Read all the blogs and forum posts that you can, and listen to the podcasts. Also read all the Real Estate investing books you can.
There is no way someone can give you a definite answer to your question because there are so many variables; location, market, economy and most important your interest and ability.
That being said, a great way to start is a small income property, 2-4 unit and live in one of the units. It's a good way to get started with very little down and build up equity quickly, especially if it needs some work.
I purchased a 4 unit last year to start my business. I used an FHA loan so only 3.5% down and I currently live in one of my units. Was able to increase fees and rents by almost $100 so far. Looking back I would say it has been a good start.
Erik
I can see the uphill battle on the internet is a real problem for newbies, from poor advice to bad to horrible is never ending. Understand that anyone who can fog a mirror can write a blog or have a podcast, the recommendations to learn by such materials will most often have limited experience and knowledge to offer a critique of such materials, but that won't stop them.
You need some money to be in RE, you will have expenses trying to be in the business, there is no real "no money" deal, gurus lie their azzes off to market stuff.
Podcast #70 isn't that applicable without a mortgage originator involved and that will usually be a concern in your area, finding one.
If you can't buy as Erik mentioned which is a good way to start you may look at lease-options, that can be a low investment approach.
You really need to learn the basics of RE before you start with any strategy, the basics will shed light on all strategies so that you understand the why and how rather than not knowing and trying to follow steps as if you were on an assembly line.....not the way to start out. :)