Lower COC but good IRR- good investment ?

[Chris K.]

Hi,

My COC on potential deal is lower (conservative) around 2-6%. But IRR is more around 20-32% (depending on my final purchase price .

I am long hold on this property , in an area where I believe it will really gain in value (this is the icing on the cake ;-)

What are your thoughts on a unit that has slightly lower cash flow and COC return, but solid IRR? (Principal pay down + cash flow / down payment )??