Property Investment how should I use my money?

[Brian Walters]

I have over $20,000 to invest in my first property. I have a friends dad who wants to get rid of an extra house for $24,000 just the pay off. However, it appraised for $50,000 some years back. I do believe the house is being trashed by his son who lives with bad living habits. That's not my worry though. He said he would owner finance until I made the repairs and then I could make the purchase but never was given a time line, he just needs to make the payment.

Realistically it would take me 2-1/2 years to pay this house off. I would probably like to finance $21,000 to $22,000 and not use my operation money, because I can't get a mortgage due to the price being so low. 

What is your recommendations? I would hate to throw all my money away and not be able to have operation money for future properties. 

The location is perfect for Section 8 and they already said they would give me up to $1000 for the rental.

Thanks

BJ