Cash On Cash ROI VS CAP ROI

[Matthew Rogers]

Hey Everyone,

I'm currently looking for my 1st 4 Plex to purchase and am planning to use an FHA loan. On the deals i've been looking at and since my down-payment will only be 3.5% my COC ROI will be fantastic but my CAP ROI isn't great.

How important is it to have a strong CAP ROI vs the COC ROI? What kind CAP ROI's have you guys been seeing on 4 plexes in the current market?

Thanks!