I’m inheriting an estate worth 400k and would like to know the best way to invest?

So quick recap of our finances :
25 marrried couple
Household income currently is 80k a year. My wife is in between jobs right now but it should be around 140k once she gets a new job.
Debts is 25k in student loans between the two of us
Retirements we currently have 150k between 401ks and roths
Savings is currently 40k

We would like my wife to stay home once we have children. Obviously that is going to be difficult in today’s world, but I know it can be done. In our area homes are anywhere from 275k to 350k, so I was imagining we would put 150k down and then have a remaining 200k to either buy a rental property or invest it into mutual funds. We can cash flow a two family in our area very easily if we put 100k down. Both have advantages and disadvantages. Investing in a mutual fund will appreciate more but won’t really help us on a month by month basis. Where as the rental property we will have an additional income but it’s a big risk/time commitment. I was raised around landlords so I know what it entails. What do y’all think we should do?