Ask HN: How would you invest/manage $20K in startup seed money?

I have wanted to start a company for the longest time. I have $300K ($210K savings + $80K 401K), I'm single, am 31 and I just got my green card. I'm thinking of spending $20,000 on a startup.

(I'm mentioning my total net worth in case theres someone who knows how to handle money better than I do, and can help me maybe use it as leverage for a startup.)

Questions:

1. Do you think I'm nuts to leave a good paying job (12K a month) in this economy?

2. How can I invest/manage the money so that I can maximise the amount of time I get to build a company.

3. Would you try to do the startup part time first? (I've been trying this for a while but it hasnt got any customers yet.)

4. Where should I live to maximise the amount of "startup time" that the $20,000 gives me? Do you think I should open up a "startup house" someplace?

Ideas I've been considering:

1. Live in India and come back for 6 months a year to keep my green card in status. Open up an office in India with 2 programmers. 2. Try to get consulting jobs on the side? 3. Ask my present employer for a part time job. 4. Buy or rent a whole house in which I can host a couple of other startups and thus save some money and create a very useful network to share in my future "trials and tribulations".

I would be grateful for any ideas that you might have.