Cash on Cash Return Breakdown Please!?

[Kenneth McKeown]

Can someone break down cash on cash return to me? I've read a few books since I started getting into REI in November and have started analyzing properties. I'm a veteran and plan to use my VA loan or do a 3.5% FHA loan or 5% Conventional loan and also will be using a grant that allows me to put 3/4/5% of the purchase price down towards closing costs / down payment. Which in turn means I'm putting maybe $2,000 down towards a $150,000 property. So when I run the numbers for certain properties (looking at MFH), my cash flow is great, but the cash on cash return is awful. Is this because I'm putting very little to nothing down? Any help/advice would be great!