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I have had great success with stocks. I would invest in a couple I know of tomorrow if I had another 20k to spend!
Don't forget, if you buy "rental" property, the lending institutions will force you to put down 20% of the purchase price AND your loan for the other 80% will be at a higher interest rate. This is because "investment" properties are higher risk than residential purchases.
Since you don't really have all that much $$$ to work with, the perfect plan for you might be to just buy a place for you to live for a while with the plan of eventually moving out and then renting it out.
Buying a residence, you will get the best interest rate that will be available to you on your loan, and you can get in for NO money down. You will still have the majority of your 20k to do whatever you want with - AND - ****after one year of living there, you can move out and begin renting it out (without having to find 20% and you can keep your 30 year fixed with the low rate you got at purchase).
Then take that 20k and invest it (for the time you are living in this property) and then later, use it for a down payment (or whatever) on a new residential property when you move out of your current unit! Remember to save enough of that 20k for those months when you don't have a tenant and other odd emergencies that pop up.
If you remain local to your rental property, you can probably manage it yourself. But, be prepared for an occasional call about a clogged toilet or a leaky something or other. If you move away from your rental property, or if you do not want to be bothered with calls from your tenants, pay a company to manage your property. It will cost a bit, but I bet you can find a small company that will give you a reasonable deal.
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