Donnell,
This is going to be long and dense... so grab your favorite beverage.
Thank you, I think ;)
First things first: 10K is enough to start, especially if you can be creative. More is obviously better. Your professionals on your team are successful when you are successful. Find folks that understand that, are scrupulously honest with you (even to the point of painful), and are people you want to spend time with. If you do this right, you could be spending substantial amounts of time and money with them. You don't have to outright like them, but you should not be questioning working with them. Essentially, find folks in the 3d world like those in the virtual world (e.g. BP).
Next Steps:
1) Get your personal finances in order, on solid footing. Some folks indicate you should have no debt going into REI, some say have an aggressive plan in place to reduce it to zero in a short time frame. I get both points, but you need to decide. Wander over to the "Afford Anything" blog (Disclosure: I get nothing for the plug) or your favorite finance/life hacking website/blog/podcast, and research, research, research. (Disclosure: I am NOT a financial planner... I am just passing along what I observe)
2) Have some level of monthly expenses set aside in case something happens. Most folks I run across indicate 6 months of living expenses in ready cash. This is money that you do not use for anything but your personal living reserves... Your investable cash is over and above this figure. Also, this cash should not be used for reserves for a building... it's ok to show it for mortgage purposes as you can access it in an ABSOLUTE emergency, but you should build at least 6 months (or more) of reserves for your building once you have it. (Disclosure: I am NOT a financial planner... I am just passing along what I observe)
3) While you are doing 1 & 2... make a business plan... "Donnell Durden will create an LLC in Connecticut, called Durden Properties LLC., that will invest in 4 unit properties in New Haven CT that...." This will get refined along the way, so it should be a "living" document. Begin to get your supports together as you are working on the plan...
Most folks starting out can't buy property without a mortgage... so that is logically your starting point. Sit down with a few mortgage folks ... ask if you can bring coffee or some snacks or make it a lunch meeting. that $5 - $15 can go a long way. It doesn't (or shouldn't) cost anything... ask your prepared questions (remember who, what, where, why, when and most importantly HOW), lay out your financials, get their opinions, ideas etc. Ask for references to good real estate agents, builders, HML, REIC's (join one of these), etc.
Once I had my agent in place, then I would begin to request that I get to see properties that make sense for your plan (you have screened them, refined the screening and they look doable). During all this read, ask questions, revise your plan as necessary, and keep researching (including BP), and adding professionals to your list, each one brings a new facet to your business. Example, if you find a good construction person, now you can do a fixer deal, without a good construction person, no fixer deals are possible (Unless you have the talent to do that work).
You don't know what you don't know at this point. No question is too stupid, except the one you don't ask. That one you don't ask, it could cost thousands...
With all that said... use the opportunity in front of you as a real live example to get yourself started... build your knowledge base first... if you haven't seen the property, go see it. There is no substitute for an inspection. The agent showing you the property doesn't have to be "the one" for your team. See if you can get the actual numbers for the property (you need to research what those are called, and what you should have).
Take pictures, video, whatever you need to do to keep that property in your mind... use it as a reference, a point of beginning. Use it as an example deal... run the numbers 47 ways. Run what if scenarios on it. Most importantly, figure out how to work the numbers, what happens to my CAP rate if I pay all cash, no cash, 50% cash. What happens if I can raise the rents 50/month, lower expenses 3%. What happens If I get my money at 12% and 3 points, or 3% and 0 points... where does the property need to price to make those combinations work? Any deal is doable, it's just the price that makes it doable. The seller might not like the price... oh well, next.
Get involved, Join a REIC, shadow an investor, Mortgage person, Real Estate agent. Spend a weekend building a Habitat for Humanity house, attend auctions (I hear Investors sometimes hang out at these), go to a closing. Use these as ways of gathering information about real estate.
One last thing... do not under any circumstances get into analysis paralysis. Find the deal that fits your model (double and triple check your model) that you have created after doing your research and pull the trigger.
If you have any more questions, or some of this is unclear (I'm sure it is), let me know. Actually, I get more out of this... it helps me to refine my ideas/plans and strategies, so, thank you for the opportunity.
Jim