Use Leverage or Stick with Cash?

[Ericka G.]

If you have cash, should you use it or is it better to use leverage if you can?  So far, I've almost exclusively used cash to build our small portfolio.  My goal for the year was to fully replace my current after tax income with an equal amount of income (after expenses) from our properties.  

Based on my calculations, I'm one deal away from reaching that goal, but I'm at a crossroads trying to decide which path to pursue next and would appreciate input...

Option A: Use leverage and  ~$70k as downpayment/closing costs to buy a multi-family four-plex for $225k, gross income: $2,750/mos, net income: $1,375/mos.  

OR

Option B: Use cash and buy a 3/1 SFR for ~$50k, gross income: $1,440/mos, net income: $1,000/mos - this has been the model we've used to build our portfolio thus far and we have a proven niche approach for this scenario

My husband is advocating that we diversify and buy a MF and also use leverage while I can since I have a very solid "9 to 5" right now and struggled to get financing when I was freetired and focused on growing the portfolio. I see his point but am hesitant to take on debt if I don't have too since the cashflow really isn't a whole lot more on the MF.

Any thoughts?