I would NOT invest in RE in this market. We have such a glut of properties (multi-year inventory) and a glut of rental properties.
That being said, if you happen to come across a real jewel in the rough (newer home, solid neighborhood, some 40% below market) then it would be worth doing. That being said, investing in gold, silver, stocks, etc at this point is a much better ROI than real estate. 2-3% per year is barely better than a CD.
Done and done.