My first home - investment property?

[Tom Dillinger]

Hi all, newbie here. I have read many threads and sincerely value the experience and wisdom of many of you.

I am a 24 year old young professional, I make 30k/year. I have 30k sitting in the bank and am interested to buy my first property, however I have about 10 months on my lease at my current rental address. My rent is very cheap so I dont mind staying where I am but I am itching to invest my money in property since I am attracted to making additional income on the side and I love doing DIY projects.

There is a house asking price 67K$ in one of the marginal, but up and coming parts of town for sale. There is a very strong rental market in my city due to the local university. The property is tax assessed at 74K, down from 94K the previous year and is currently listed with a real estate agency for rent for 650$/month. I assume this means that it is at least in rentable condition. Assuming I put 20% or more down my monthly mortgage payment would be less than 300$/month which is very affordable for me, and I would still have money left over as a buffer and for possible repair/improvements that are necessary.

My main questions are:

1) Is it foolish to buy an investment property before buying a house for a primary residence? Will I be losing out on major tax incentives?

2) Should I get a buyers agent or do you think I can negotiate the deal myself? I know the seller is motivated and I hope to get a better than asking deal, I'm just worried I dont the language of deal making or I might inadvertently do something wrong to screw up the deal since I am a newbie.

3) On the MLS sheet it says "Lead based paint exhibit available" what does this mean? It also says "RENTAL RESTRICTION: YES" what does this mean?

4) I am viewing the house tomorrow with the sellers agent, what red flags should I look for regarding the condition of the property, what should I say/not say to increase my haggling leverage?

5) How necessary is landlords insurance? I hope to rent to university grad students but since it is a college/party town is the cost of landloards insurance worth the safety net it provides? I was thinking that I could just reduce the asking rent and be really selective about the tenants.