2nd deal stats looking for feedback

[Amanda Maldonado]

Hi everyone, here are the stats on our 2nd deal, a 3 bed 1 bath (garage conversion 1154 sq feet including the garage) in Port Richey, FL. We closed in late September and had it rented 10 days after it was advertised for $245 more than we expected. Our original numbers were based on $1050 in rent. The property was really dirty, the countertops and appliances needed updating, we had to paint inside and out, and rescreen the patio. There was some electric work and the garage door was replaced as well. We will need to replace the HVAC at some point but are waiting for it to die first. We are closing on our 3rd single-family home this month, we live in California, but are from St. Petersburg, FL which is why we invest there (we have boots on the ground). 

Typically, we will do a deal if it cashflows more than $250 and has cash on cash return of 6%, and gets to at least in the low teens for ROI. We think we go conservative on our numbers, especially expected rent, and appreciation we run at 2% which is low for that area. We recently realized our taxes will be going up much more than we'd originally been crunching numbers for so to balance that 10% a year increase we have gone to a 2% a year increase in rent (seems feasible). We are also only purchasing homes with roofs/HVACs under 5 years old and if not we put the money aside for that expense in our reserves.

We are just looking for feedback on what we are getting right/wrong thank you!