Rent + Invest Out-of-State or "Invest" Locally via House Hack

[Nathan Yee]

Hello BP Community! I'm based in Los Angeles and am looking to purchase my first investment property with about $50K allocated. After attending local BP events and REI clubs, it seems overwhelmingly apparent that investing in out-of-state markets is  a good way to put my dollars to work when it comes to cash flow/appreciation, etc. I believe in the long run this is something I should strongly consider/do.

Currently, I'm battling the idea of whether I should rent in Los Angeles and invest out-of-state or if I should house hack in my local market (where I'd take a negative cash flow hit due to higher purchase prices, but may be able to benefit from appreciation). What would you do?

All feedback is welcomed and appreciated!