In your case looking to larger assets where you can effeciently cost segregate to gather bonus depreciation would be a smart move.Appreciation - Where in the country is the asset class you like growing or going to be growingAmortization of the loan - What sector or even region if you look locally for funding, is going to offer the most favorable lending so that less goes to interest expense and more to pay down of principle.Have fun with a spread sheet comparing these 4 returns from your investment with the type and location of assets you find attractive. 

A company can go up in value by increasing it's customer base, increasing it's product offering or increasing its prices. 

I had a few houses that lost about 30k in equity overnight in the area (had been considering selling to do a 1031 into some new builds, but that turned into a less attractive idea after the equity drop).

Still, it makes sense because oftentimes some of the rents have never been raised for years, and those NW side neighborhoods have increased rent dramatically! 

I would also increase your underwriting rehab estimate number by 15-20% since most renovations go over budget.

I estimate high of what the bill would be and put it on their lease, I have not had any issues this way and if the water bill goes up, I will increase on the next lease. 

I think your income easily justifies a common-sense, time-proven method: increase earnings, reduce expenses, save, and invest.

My first investment was not a great one, but rents increased from $1200 to $1900/month in a few years.

With platforms like Airbnb or Hipcamp, you can attract travelers looking for unique stays.

My monthly fees are as follows (handyman inspection $125, Cleaning $270 a turn (I collect this from guest), TAT&GET (collected from guest) Property Taxes, Insurance (I highly recommend you price this out, with hazard I pay $1,200 a year), internet/cable $100, Electricity $300 a month, AOAO dues $900 (association fees are increasing minimum 5% a year).