Cash purchase and resulting CoC

[Carissa Holmes]

Hi All! Does purchasing a rental property (SFR) with cash always result in a lower CoC ROI than getting a bank lone (at 4% interest)? I'm in the practicing analysis phase of my growth plan and every example I've done this has been the case. I'd greatly appreciate any guidance on this as I have not been able to find a clear answer within any of my resources.

Thanks in advance!

(I’m just starting out so please feel free to communicate with me as you would a child ;))