Home to Rental Property - Cash on Cash Return vs. ROI

[Jesse Looper]

I am considering renting the house I currently live in when my wife and I upgrade. Since it was considered my primary residence when I bought it, I only put 10% down payment. When evaluating the profitability of this property I have found that the Cash on cash return is very low (2.75% or about $50 per month) but the ROI is extremely high (about 32%). Although I would love to have a cash flow from this property, I don't necessarily need it.. I will still be able to save plenty for my next rental property based on my the salary of my current day job. My question is, how do I evaluate such a spread in these two metrics? Is the 32% so good that I shouldn't pass it up or is the cash on cash return so bad that I would be crazy to consider renting? I'm also worried if I sell, I will be less motivate to go find the property I want and in this market it won't be cheap.