I have 0% CoC return across two properties (one at a loss and one profitable) after being 1 year in. I think I've seen people mention you should at least aim for 5%. Not in a position to raise rent right now due to the market in these areas. Is it common to be in a 0 gain/net loss position in the first year? Should I start thinking about selling these properties? I see the tax benefits and mortgage getting paid off, but is that enough? Any advice?

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This is the reason market will crash soon. People buying investment properties with 0% COC. Makes no sense.

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Is the reason you have 0% returns due to a high amount of repairs or maintenance, or due to vacancy? If so, that’s not something I would expect in future years, so it may just be a “stabilization period” that you have to work through.

If not, you may have just made a bad but. What was your pro forma telling you prior to buying?

Are values at least appreciating? Do you have good tenants? If so, you might be alright with 0% COC in the short term (especially since it won’t be easy to sell tenant occupied properties).

Is your 0% factoring expenses to property management / paying yourself as well as maintenance?

If not you may want to then see if your interest rate is something you can play with in the next few years.

Self managing both - not paying myself, minimal maintenance

Yeah currently doesn't make sense to refinance, maybe in the future - so you'd suggest holding on?

It all depends on the market, if rent does return to previous amount what would your CoC return be and how confident are you the rent will increase by next year?
Personally, I’d take a 0 CoC return if the properties are in an appreciating market and I can supplement any repairs/other expenses that may come up with my W-2 income, assuming it’s not an outrageous amount.

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