Buy my first property to house hack or buy for a STR/LTR

[Andrew Cruickshank]

Hello everyone, I am looking to purchase my first deal in real estate! My question is what do you think is the better option for my situation. I am in the United States Navy and going on a year long deployment in the winter of 2022.

My wife and I currently live in the DC area. Due to the high cost of living and with no family around she will be moving back to new Jersey, where we are both from. Unfortunately new Jersey isn't super affordable either but this way she will have family nearby. She is not able to live with our family members long term and we will need to find her a place to stay. The two options we are looking at are buying a house in New Jersey for her and a roommate to stay. After a year when I get back we will move else where and continue to use the property to rent out full time. The other option would to be buy a house in a more affordable and area out of state in a more popular real estate market. We have looked at doing STR rentals as well. This option would mean she would have to find an apartment or house to rent out, with a roommate.

Also for the property in NJ I would be able to use my VA as it would be my primary residence.

Please let me know your thoughts on if we should buy the property in NJ to house hack and then rent full time or look for a property out of state for either LTR or STR. I hope I explained that well, any questions please ask.