Need Advice: Which is a better financial move?

[Brandi Piller]

Hello, thank you for taking the time to read this. We are acquiring "buy and hold" real estate properties through out the states. We have $40,000 cash to invest in real estate. Which choice is a better financial move?                 

Choice #1: Buy a house that is valued at $100,000 which means:

a. take out a loan

b. will have a mortgage ~ 30 yr fixed rate

c. our cash on cash will be $400 a month

d. use the $40,000 as a down payment

e. ready to rent

Or

Choice #2: Buy two houses for $20,000 a piece using our $40,000 cash, which means:

a. no mortgage

b. $200 cash on cash per house

c. own the houses out right

d. will need to put money into the houses to make them "renter ready"

Which choice is financially more beneficial for us?