I would love to hear any advice or suggestions on how to proceed...We just closed on a place in Puerto Vallarta.

Because it will be very hard for you to know if he is selling you a deal in a good neighborhood, in good condition, and then placing good tenants.As others have suggested, see if there is a syndication deal that fits your investment goals.

I suggest you write up a contract with your seller and take it and your GFD to a local title agent. 

If I sell the house, I would like to use the money for real estate investments and would love to hear everyone's suggestions.  

Nathan's search method usually works, but I use what Google suggests: '<search item> site:www.biggerpockets.com' (without the single quotes on the Google search bar.) 

Of course and I never suggested otherwise.

The answer is very simple: if it was that easy, everyone would do it. 

Here are a few suggestions on how you can maximize the wealth of information available: Check out the blogs and podcasts, or take advantage of the search feature (magnifying glass).

If you get the conventional mortgage and it records as a first lien that’s simple every day deal.

Esprit@Matthew Drouin makes some good suggestions and things to think about.