Expenses are about to go up considerably.

Also why are you deducting 50% for expenses? 

Also, I’m likely to invest out of state as California is too expensive.

Tighten up your requirements.

One of my buy box requirements is the house needs to cashflow at least $500 per month or I am not buying it. 

You need an income that meets three requirements:Rents increase faster than inflation to offset constantly rising prices.It must be reliable; it continues even during economic downturns.It must last throughout your lifetime.These are all long-term requirements, so the current interest rates are not the major issue.

If your goal is financial independence, then selecting an investment city is a straightforward process due to the income requirements for financial independence.

The sewer expense is a big hit.

We have a somewhat specific wishlist for lending requirements and terms that I will highlight below.

HOWEVER, this is a VERY expensive way to acquire property and can backfire if the new appraisal doesn't come in where you need.