How do I invest in real estate with 20k

[Robert Dennehey]

I have saved $20,000. Is this enough money and how should I get started?

[Cassi Justiz]

Hey @Robert, (for some reason it's not letting me tag you!)

It depends on what your goals are. Do you want to get into your local market or are you looking out of state? Do you currently own your own home? 

If it's possible in your situation, I would buy the cheapest house that you would be comfortable living in (SFH or multifamily if possible). Put as little down as you can to make the cashflow numbers work. Spend the next year living in it and remodeling it to get it up to high end rental market standards. After a year or so, you can move out, rent it out and keep your nice owner occupied loan.

If that isn't practical for your situation, then I would recommend buying a nice turn-key style rental somewhere in the Midwest. There are plenty of markets where you can get a 70k house that exceeds the 1% rule. Even with 20% down, you should be able stay under 20k out of pocket and still have little extra to hold in reserves. 

Good luck!