DEBATE: Cash Flow vs Cash on Cash return

[Shawn M.]

When evaluating a property what do you look for:

High Cashflow?

Example: $74,000 house rents for $900 month, buy with all cash gives you a 9% Cash on Cash return and a $587/mo cash-flow.

or

High Cash on Cash return?

Example: $74,000 house rents for $900 month, buy with an 80%LTV 4.0% mortgage gives you a 24.5% Cash on Cash return and a $302/mo cash-flow.

Which do you prefer and why? When evaluating a property what metrics do you lean on?