We have reduced our water consumption by 15,000 gallons per day, just by finding and fixing leaks.  

I am a licensee so I would receive commission acting as my own agent which would potentially reduce the price 1.5%.

By paying down more principal it reduced the risk that higher interest-rates  presented.  

Want to reduce your competition further - take on rehabs sane people will run away from.

There is no "rule" for reducing or adding bedrooms to a residence.

So Those capitalized expenses do reduce your net profit.Unfortunately though, if you do a 1031 exchange as @Drew Reynolds, you must reinvest all your cash proceeds and purchase at least as much as your net sale in order to defer all tax.  

While I'm still not 100% sure we have made the right move in terms of numbers, I'm pretty confident we are in the right track based on what we have taken into consideration Vs what we've been reading.Now back to my question, our first rental is been on the market for a little over 2 weeks and after reducing the price a little we got a better response from potential renters.

While I'm still not 100% sure we have made the right move in terms of numbers, I'm pretty confident we are in the right track based on what we have taken into consideration Vs what we've been reading.Now back to my question, our first rental is been on the market for a little over 2 weeks and after reducing the price a little we got a better response from potential renters.

Good on you for being willing to be proactive on this.  

I would say my priorities are: (1) good/stable/consistent renters with a good property management company (reduce my time input), (2) and (3) equally, cash flow and appreciation.