I am just entering the real estate market

Take a look at NACA (Neighborhood Assistance Corporation of America). It's a nonprofit organization that surprisingly few people have heard of. They help lower-income people achieve home ownership and have been around for awhile. There are certain specific requirements to qualify for their program such as they review your finances, help you budget for what you can afford, etc. (go to their website to check it out), but the benefits are amazing: through them you can qualify for a 30-year mortgage currently at 5.75% with no points and usually no down payment and quite often no closing costs, either. Essentially, they ensure you are financially ready for home ownership and purchase within what you can afford. There have been several people on the Bigger Pockets Rookie podcast (including the co-host Tony Robinson, I believe) who have gone through their program and were able to buy their first primary residence with no down payment and all closing costs paid. It's not for everybody, but it could help you get into your first home while saving some of your savings for contingencies.

Have you done the buy vs rent analysis?

Where do you live? And where do you want to invest? $28k goes a long way in some places, and not very far at all in others, so it's going to make a really big difference!

If you're just starting out and live somewhere $28k is a decent downpayment on a house with more than one bedroom, I think one of the most straightforward ways to get started is just to buy a regular single-family home and rent out the extra rooms. You mention you're 22; do you already know anyone you like living with as a roommate? Would that person consider moving with you and paying you instead of some other random landlord?

My experience suggests tenant selection is the most important part of real estate investing, so if you can hack that element of it by living with someone you already know and trust and getting paid by them, it's a great way to start building equity with other people's money and crack your way into further investing!

Hi Tate,

Congratulations on your savings so far, that's a great start. I would start by looking at the market in the area you would like to invest. Once you have a good sense of what's out there (I would also start by looking at duplex's & fourplex's), you can start tracking prices & rents. There are programs that will allow you to purchase a property with a low down payment. My only caution on this is that you are much better off having a healthy cash reserve as issues always seem to pop up when you don't.

Start networking in your area (local Facebook groups, meetup.com and REIA) and get to know others who are investing locally. This will allow you to connect with lenders who can layout what you can qualify lending wise. Just know, agents and lenders will often offer you more than you need so you have to be clear on what you are looking to borrow and how you will repay your loan.

Buying a duplex or 4-family is a great way to keep you expenses down and begin to build wealth in real estate assets. Speaking with a lender and real estate professional would be your next step. Get clarity on what you want and what it will take to buy and make sure it fits your long term goals.