Attached is a Spec sheet for the tractors. The TC35 has a 3 cylinder engine while the TC40 has a 4 cylinder engine w/greater displacement. You will get more torque out of the TC40 if you ever end up doing a fair amount PTO work (especially mowing heavy stuff - there is a difference). You also will have more 3PH capacity (not a lot more). In addition, the TC35 and TC40 have the same transmission and pump flow, but I could sworn that the pump operating pressure was a little better on the TC40 (2500psi) than the TC35 (2300psi) and should give you a little better loader lift capacity. Option 3 is not bad if you need all the implements, but based purely on tractors, I would go with options 1 or 2.