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Updated over 5 years ago,
Cash Flow vs Cash on Cash ROI
Background: Looking to house hack a multi family 2-4 unit.
Two financing options: Conventional 20% down vs FHA3.5%
When I analyze these properties I am realizing a theme. Higher down payments are allowing for higher cash flow rates but diminished Cash on Cash ROI. Lower down payments are yielding lower cash flow with excellent cash on cash ROI.
Is there a superior metric to follow? Cash flow vs ROI?