Solo401K Mortgage Leverage questions.

[Mark Spritz]

Every time I use the Bigger Pockets Rental Property calculator and enter numbers for a property, where I do one with Cash, and one with a Non-recourse loan mortgage where I am putting in the exact numbers and costs of the mortgage that I get from the lender. If I change no other numbers in the expenses and income fields, I always seem to get a better return both Cash on Cash and Annualized Return percentages when I choose Cash instead of the mortgage numbers. I thought leveraging with a mortgage would make the Cash on Cash percentage go up compared to paying full cash?

So mathematically, if I had one property cash at 500K getting 10% cash on cash, and I had 2 properties with a mortgage 250K each, it would return a less cash on cash percentage on the same 500K cash I have in the deals. So I am really confused on when it makes more sense to mortgage a property in a Solo 401K.

Thanks

Mark