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The less debt you have, the more real estate you can purchase. Make your first real estate purchase There is a tremendous amount of information about how to invest in real estate. The first real estate purchase you make should be the home you live in. Plan on putting down 5-20% depending on the loan you can qualify for. Start accumulating more houses Once you made your first purchase, now you can start saving and looking for a second rental home. Make sure you research the going rental prices and look for a deal in a good neighborhood. Before buying a rental home make sure your mortgage payments, taxes, and insurances are less than your potential rental income would be. Pay down your debt as soon as possible It’s important to have as little debt as possible when investing in real estate. One investor I know purchases a home and works to pay it off as soon as possible. Once he fully pays the off house, he will purchase a second home and work to pay off the entire mortgage.