Getting an Investment Property Loan on a SFH Rental

[Carson Belknap]

Hello, 

I was curious what the community thought on getting an investment property loan on a SFH that will be used as rental. Is it a bad idea because of the much larger down-payment required and therefore the Cash on Cash return is significantly lower?

I own one home I am currently house hacking via a standard owner occupied mortgage, but am trying to buy another for either renting by the room or to an entire family. It just seems really expensive if I go the investment property route especially for a SFH where I can put 5% down and rent by the room for a lot more than if I rented by the house.

Thoughts appreciated!