Leaverage vs Cash for sub 40k properties

[Deadrick Colbert]

Hypothetical question...If you had a 40k to invest and wanted a buy and hold property. Would you pay all cash for a sub 40k property, make a few minor repairs, and then rent it out for $500-$600 per month or would you use the 40k to make a 20% down payment and get a conventional mortgage on a much better property and rent it out at $950-$1050 per month?