Cash Purchase vs Finance

[Daniel Coley O'Grady]

I am new to Real Estate investing and am mainly interested in LT Landlording deals of SF or duplexes. What I am really struggling with as I develop my strategy is; why would anyone finance a deal vs paying all cash (assuming you have enough cash resources of course).

As an example, assume a turnkey house costs $200,000 and rents for $1800. (And you are looking to invest around 200k)

Option 1 - paying cash, you cash flow 19,600 each year and get $6K in appreciation (assuming 3% appreciation). You also save a few thousand on closing costs and maybe a better purchase deal

Option 2 - You buy 4 $200,000 houses putting down $50K on each. If you cash flow $200/mth on each, you get $9,600 per year + $24,000 in appreciation. 

- why wouldn't you want a bird in the hand of $19,600 cash flow vs $9600? The appreciation is nice but is not a given and is more of a hope. 

- the time spent managing 4 houses vs 1 seems like a big deal.

-Much easier paying cash instead of dealing with the loan process.

- Financing seems much riskier, since you have to make the mortgage payments regardless if you have a tenant or not if you finance, but if you own not having a tenant would stink, but you still are getting the appreciation and the risk of going negative cash flow is MUCH less.

Thanks -I am really interested in hearing different viewpoints.