We decided not to renew because we had not done the screening piece and there was going to be a major increase in the rent.

It increased so much in value already. 

I too am appalled at the increasing inability to get a second chance in the USA, a country founded,  developed and built on second chances. 

As demand for space in the market drives lease rates higher in older properties, it’s only a matter of time before those lease rates justify new construction and increase supply risk.

If it keeps happening they get a nice rent increase on the next lease renewal.I have installed Boiler Reset Controls on my properties to help a little with this issue. 

If you add a bath it may trigger to re-assess your property tax, and the increased amount may not be justified from your rent (especially if you own this property for a long time).

I want my PM to make a profit, but I want that profit to come out of the profit I get when they've increased my revenue and lowered my expenses and I want to understand exactly what I'm paying for, how much, and why.

Plus my income has increased 16% since that original approval.

Instead of trying to utilize the remaining $10k on acquisition of property #2, could we make $10k worth of repairs or upgrades to the first replacement property (roof, Kitchen etc) that would make it more attractive to a tenant and/or increase the value?

And if I continue to rent, rent will increase at least 100/mo each year.