Finding a mentor and learning the business is an excellent first step.  

Most FSBOs I run across are overpriced and the sellers don't even know how to offer or what steps to take, what disclosures they should have filled out already, etc. 

That's why I tend to shy away from those types of market (it's proven to be a good strategy for a lot of people though).

We are looking to expand our portfolio, though we are unsure what our next step is.

I get that there might not be any way to really 'know' when I'm ready, but the more I read/listen/learn, there does seem to be a pattern of fairly common problems people run across, or steps that they have to take.My current goal is to try to buy my first rental property before my next birthday in May.

Steps to take or planning ideas???

@Justin Worsham This is a really pervasive issue...eventually, consumer advocate groups will step in (we're getting close in my market)..hot housing markets attract unqualified flippers (like your case here).

It was a big first step for the most recent podcast guest, too.

The first pillar is avoiding unnecessary and risky activities (don't drink and drive, insurance generally wont cover your poor decisions) and take good care of your investments - these simple steps will help you prevent lawsuits before they even occur. 

Step two: move into property and stay in there for at least a year.