What to do with your first 10k?

[London Robinson]

Hello BiggerPockets, So I have saved my first 10k and I have been looking for a good market to invest in rentals (I currently live in Southern California), So far from my online research the Midwest area seems like the best place for me to invest. What should my first step be? All feedback is welcome. Thanks in advance

[Larry Fried]

@London Robinson $10k, even with a 20% down conventional loan will only get you a $40 something house (there will be closing costs) and frankly houses in that price range most lenders won't loan on.  Further as an out of state investor buying individually in that range is asking for trouble - it isn't likely to be a happy investment.   I have found a way to invest in a diversified portfolio of 10 houses at a time in the Midwest.  It involves buying an interest in the portfolio with a minimum of $10k, and as an investor I co-own with the managers.  I blogged about these very passive and low stress investments quite extensively 

Have I Found the Holy Grail of Passive Real Estate Investing?