What CoC returns would be the absolute bare minimum

[Maninder Pal]

I am looking at investing in my first rental (SFH , Class B area). 200k with 25 percent down.

I heard mixed opinions on CoC returns. I dont want to chase high CoC at the cost of mental peace especially since this is my first investment. So looking at some advice from seasoned investors. What is the absolute minimum CoC I should target in year 1? Is it zero? 5%?

[Greg Scott]

I wouldn't touch a SF rental for anything less than 10% CoC.

But, I don't think you are asking the right question. People that chase the highest CoC returns often end up in D-class neighborhoods because (at least on paper) the CoC looks high. They soon learn that it is nearly impossible to get good returns in D-class areas. A better question is "In a B-class neighborhood, how can I achieve high CoC returns?" Of course, that is a long, complicated answer, but that is where the money is.