@Cary Ferguson Jr guess it depends on how low rents dropped during that recession, but based on what rents dropped to last time during the recession in this same area..I think I'd be fine. that's what I find so odd?? 

I wouldn't be concerned with the level of other posts as everyone on here started without knowing anything about real estate.

Section 8 program is only to help low income tenants rent, this program is not to help with mortgage payments.

I'm looking to get started in investing yet have a low budget to work with. 

Insightful :PTo original poster, 20k is fine to buy a low balance performing note.

There are plenty of opportunities at low or no cost to meet local R/E Investors.

Is $550 market rent are is that low for the area as well?

If you work on a power listing team then you might get some listings.If you choose to work with investors on SFR the price point is very low in most markets under 100k a house.

Are there any loans similar to FHA where it is low money down for purchasing a rental property?

Low rents give tenants an incentive to stay long term.