Cash out refi to invest in rental property: one or multiple?

[Zoe Lee]

We would like to diversify our investment by investing in rental properties. We plan on getting a cash out refinance with our primary house.

Let's say we'll get 100k in cash. I would like advice on:

Option 1. buying one SFH with all 100k in cash

Option 2. use 100k as down payments for 2 small SFHs

Which option is better? what are the pros and cons? Since we will have to take on a new loan with doubled monthly payment and 5 more years to pay off, this is a big decision for us. would like to research well and choose wisely.

Thanks very much!