Xanadu. Breeding can be alot of fun. Go very slow. Get a very clear vision of what you want to breed before you start. You may consider buying a couple older mares that are proven but be careful with the bloodlines. Very well bred babies are selling for fairly low prices right now. You can get Premium Oldenburg and Hanoverian babies with top bloodlines for between $7,000-$8,500. Many people are asking more but many of them are not selling their babies. Before you buy a mare, make sure she is already approved for breeding with whatever registry you are wanting to deal with. Don't take chances. Babies who can't be fully registered will not capture a descent price and may be hard to sell at all. Whichever breed you decide on, breed top bloodlines. Don't buy a mare just because she's a lower price. It costs just as much to breed and raise a top foal as one who you can't register.
When picking a stallion, find a stallion owner who is willing to honestly help you determine if your mare is a good match for their stallion. Take a honest inventory of your mare before picking a stallion. They all have weaknesses. As with most of us horse people, you'll probably need some good friends to help with this evaluation since we have trouble seeing past our own horses strengths. Nothing personal, I'm just as bad, probably worse than most.
Do as much as you can yourself. Try not to hire anything out that you can do yourself. Before you get any farther involved than you are right now, I would take a breeding class. www.equine-reproduction.com
has excellent classes and they travel around the country so you may be able to get a 2 or 3 day class fairly close to you. That would be my first next step.
Horses can and do end up in terrible situations if they're feral horses or million $$$ horses.
You do have a added responsibility to try to sell these horses to good homes. Most people I've sold babies to have been very good homes.
Good luck and have fun. Breeding is wonderful, just go slow and do a little more research before diving in. Don't take on any more horses than you can afford to support by yourself. It can take time to sell the babies. So be prepared, you may be feeding them for awhile. :) www.hiddenvalleyfarms.net