Want another rental- Would appreciate advice

[Steve Maye]

I have a single rental property and have had no issues.  I am looking to purchase my second, but would appreciate some advice.

For my first property I asked for advice from a property manager who recommended purchasing a new home in the area.  Great location, schools, etc.  No issues renting.  No renter issues.  No repairs.  I bought the home and hired the property manager to manage the property as I live out of state (long story).  Everything there has gone great for me, but I just don't know if the return is what it should be.  I paid cash for the home at ~$200K.  Using the REIPropertyAnalyzer spreadsheet I got:

Cashflow / Initial Investment = 7%

Cashflow / Assets= 7%

CAP Rate = 7%

Now I am nearing retirement and moving back to that area.  I want to purchase a second property.  This time I want to do my homework to understand if what I did was smart or if I need to change tactics to maximize my return.  I have again talked to the prop manager.  Another new home of similar cost is available.  Rent would be similar, but this one would have about $600 more in property taxes, thus reducing my returns.

Am I looking at the right types of properties to get the most back from my cash?  Or am I just choosing properties that make my life as a landlord easier?  Any advice would be appreciated.