Investing in Real Estate w/$20K

[Alex Ray]

I have $20K saved up and I would like to get into real estate investing. The houses in my area are affordable, but everything in this price range ($0-$20K) is in poor condition and located in depressed parts of the city. Although these properties are not inherently bad, they are rent for only $700-$800 per month, they need a lot of work, and they are notoriously difficult to secure.

Does anyone have suggestions on how to get started in real estate investing without purchasing low-end properties? Should I consider alternative real estate investments such as land or office condominiums? What can I purchase within this budget without resorting to "ghetto" properties? 

[Ian Ippolito]

Personally, I avoid the low-end properties because the turnover and the maintenance can easily turn what looks like a bargain into a money loser. If you  are determined to go ahead with it, make sure you do some research on what capital expenditures are, and include them in your calculations.  Very often they will eat up the profit on low and Properties. Good luck.