What's More important Cap Rate or CoC for SFH/Duplex rentals?

[Krystian Kucharzyk]

[First time investor here!]

I'm a first time RE investor running some numbers on rental properties available in my area (Connecticut) specifically on single families and duplexes. I understand the difference between Cap Rates and Cash on Cash Return rates. But having trouble grasping what is more important when my goal is to generate passive income. For example I'm looking at one property with a 1.9% cap rate, but 8.1% CoC.

Any advise would be hugely helpful!

[Joe Villeneuve]

CoCR because CAP rate is a commercial analysis tool...not a residential one. There is no debt service in the calculations. It was designed to be able to compare different types of commercial RE with eachother.