New investor in Fort Worth Keller area

[David A.]

For the longest time I've had a passion for real estate. Not only because of the potential profits but its something that is always on my mind. A little background history, I am 24 years old and bought my first house 4 years ago, 3 of which has been rented out. I purchased the property a little on the high side and paid $101k for a 3/2/2 1240 sq ft home at 5% on a 30 year fixed. My piti is $820 per month and luckily I have had luck with tenants and recently increased the rent with a new couple to $1050. Now that the market has toppled, the comps put it at 90k fmv. I'm not looking to sell and plan on keeping this rental for many years to come. The cash flow im getting is ok with me. My wife and I are expecting a baby boy here next month and we are looking to purchase another property.
Since we can't get another FHA loan, wells Fargo who is our current mortgage will approve us for a conventional with 5% down. My goal is to close on a good reo that needs repairs in 6 months or earlier if I find a heck of a deal. With this next house I want to rehab and put it on the market. Now, I don't know if there are seasoning periods before we can sell it. Is a house 35% below fmw possible to get with a conventional loan? I have so much to say and contribute to BP I think this is great and I have learned valuable info/ investors experiences. what do you guys think is a good strategy on a second house? I have 0% apr checks for roughly 10k to use toward a rehab as well as as cash reserves.