The numbers didn't look spectacular at first glance, especially with rising interest rates nibbling at cash flow.Here's the thing: while your immediate cash flow only bumps up slightly from $1,300 to $1,400, you're doubling your assets.

In addition, just because rents spike doesn't mean your tenant received a comparable bump in pay.

Wow, I'm glad this thread got bumped because that was one of my first posts!

We plan to remove the carpet next year and install LVF to increase property's value and potentially bump the rent. 

I'll bump this again as I like haunted property stories!

In the lifespan of your investing if you continue investing this speed bump will become smaller to you.

Rates fell off a cliff in August only to bump back up to just shy of where they were at that point in the last two weeks. 

However, if you're rental rates are close to the market rates my suggestion would be to set them at $1375 and then bump them up next year upon renewal another 2-4%. $25/month over the course of the year is only $250 and you'll likely lose that amount in turnover costs if one decides to move out. 

I see a few challenges arising with this type of set-up.If for example, he/she doesn't do a good job or if you no longer need their services or if a conflict arises between landlord and manger.Is their a way to structure the managers pay without bumping in to challenges later on?

Are you seeing a similar small bump in income, or is it more significant in your area?