But, am I looking at this too conservatively, considering that by the time we rent the home, we will already have equity of at least $13k from paying the mortgage from the year we lived in it?

Run comps on those properties and assign a conservative and reasonable market value to that property.5.)

Of course, this also ties in to having high-quality tenants that pay on time.Rents have increased:  We've been watching rents in the area pretty closely and feel confident that we can raise our rent by anywhere between 5%-8% and still be under market when the current tenant's lease is up.Property values have increased:  talking to our realtor and looking at various comps, our house has gained a conservative 6% from our purchase price over the past 10 months.Things We Would Do DifferentlyLocation, location, location:  yep, you read that correctly.  

So conservatively from a $1500 gross rent $405 per  month is a good ball park to be in.  

While driving the car and it breaks down in the middle of the road and have your little ones freezing while waiting for the car to be towed is not a pleasant thing to see.Buying a decent 2 years old car is more of a conservative way to save $$$.Either buying a new or used car, I still have to put out $400-$700 monthly .My concern is what and how do I need to invest so I can generate the amount to pay for the car.

If you are looking for a conservative and safe investment, I think you've done a very good job.  

I would stay conservative and use 10% CapEx.  

Also, investors are a little more conservative when it comes to partnering on rentals.

When I analyze a property I take a conservative approach.  

I'll also be the first to admit that some of the input assumptions I've applied are not as conservative as I'd prefer (I'm fairly risk averse); however, I think my assumptions and fee estimates are still justifiable.