Why can cash on cash be lower when going all cash?

[Hector Flores]

Hi,

I am starting in the real estate investment world in Mexico City. I have enough cash to buy 1 apartment, but I am deciding if it better to use loans to acquire more than 1, maybe 2 or 3. What are the benefits or cons of going all cash? I have read the following post (https://www.biggerpockets.com/blog/all-cash) and it is not clear to me why using a loan would increase the cash to cash ratio, and in what scenarios this is good. Can somebody please provide insight in why this might be the case?

I believe the crux of the issue is if the interest you pay in the loan is lower than the appreciation you get from the property.

Thanks