Agent

I thought most people did their own research and contacted listing brokers on their own?

No direct advice, but you might find this blog useful - it details the FSBO experience quite well: http://www.brickunderground.com/blog_tags/The+FSBO+Diaries

First off, you need a mortgage broker/banker, not a realtor. Talk to some mortgage people first. To find properties, try the Trulia website that allows you to search by neighborhoods. Let's see, the least you can put down on an FHA is 3.5%. On 500K loan, that is $17,500. dollars. That doesn't include closing costs or the 3-6 months PITI you might need to show. You are cutting it real close with the amount of money you have. Closing costs will run you about 6% of purchase price, so try to get a "seller's concession." However, at 500K or less for a 2 family, you are going to be in a shitty neighborhood at best, or its going to be a serious fixer-upper, so do good market research on the amount of rent you will be getting. You are going to have to pay FHA "PMI", (probably about $200-300 a month.) Do a spreadsheet: PMI Mortgage payment Taxes Water Heat Electricity Repairs. I don't have time to do an in depth analysis, but big expenses will ALWAYS pop up--both at the closing, negotiation process, and after you get the place. I think for a first purchase (and you can do FHA), perhaps get a NICE new apartment that you can afford in a changing neighborhood. You won't make income, but I doubt you are going to make income with the figures you are talking about, and you will probably be in over your head. In a few years, if the place hopefully appreciates, sell when you have enough equity to buy a 2-3 family.

I've heard that Betancourt is good.