How do I increase my return on equity in my rentals?

[Mike Sproba]

I'm a realtor and investor of 20 years in TX. After listening to a BP podcast I decided to run the numbers on 13 of my rental homes to get my return on equity. From dividing my cash flow of $79,000/year by my equity of $1,350,000 my return on equity was 5.8%  The homes ranged from -1% to 12% return.  What pointers do you have for increasing my return on equity?  What is a good goal for return on equity?

Thanks

Mike