$400k to Invest. What would you do?

[Carlos Simmons]

Will be cashing out soon from a company buyout.  I will end up with about $400K cash after taxes.  

My first impulse is to purchase 4 $200k homes with $100k down on each and rent them out.  

The thinking behind that is I'll avoid being too leveraged but I can still enjoy a bit of leveraged upside if the properties appreciate in value.  

I guess my question is, assuming I can find properties that will produce decent cash flow, would I be better of with fewer properties that I own 50% or 100% or should buy more properties and take on more mortgage debt?  

I don't have an immediate need for the income at the moment but might in 2 - 4 years should I decide to retire early.