Saving vs. Investing while living in NYC

[Angelica Rose]

I'm interesting in small-scale real estate investing to start with, after saving over the next 2-4 years. I'll be staying in NYC long-term, so my cost of living is higher. I make 50k, taking home way less after taxes. With good saving habits and cutting out my cab habit, I can save 6,000 per year. Not much, but it's what I can do. I've also convinced my parents to let me sell my car back in Baltimore, which could get me anywhere from 5,000 at the worst to the ideal of 10,000. Keep in mind I will also be going to grad school and taking out that loan sometime in the next few years as well. 

My question is how on earth do I do both (saving and investing) without completely depleting my savings after 2-4 years and starting from scratch all over again ? 

Also, note: 

I would love to make a small scale version of house hacking work, renting out rooms in purchased condo. But out of state investment, perhaps back in Baltimore, may make more sense in terms of entry cost. (And then I could hopefully use that money to buy something in NYC, as I do want to stay here long term and would like to own in one of the more affordable areas in the outer boroughs like Sheepshead Bay, Riverdale, Forest Hills, etc.)