Primary resident investment in NYC vs. rental property elsewhere

[Aymeric De Conde]

Hello network,

I am in a conundrum in terms of where to invest with say ~120k. I live in New York city and would like to start investing in a property for future passive income and I would like to have the opinion, suggestion, comments of anyone with experience. If I invest in New York city and purchase a 1 bedroom apartment I can make my mortgage pay my rent, have the benefit of making it a primary residence (lower interest rates and less capital gain tax if I sell in the future) but the time it will take to get to 100% equity is much longer than using the same capital and invest in 2-3 single family housing in another city in the U.S. with a stable market where I would buy and hold and have the tenants pay my mortgage (interest would be higher given that it would be an investment rental).

I am trying to see what makes the most sence given that the ultimate goal would be to have passive income in the future (I expect to leave New York city in 4-5 years where I would rent out my apartment bought in the city).

Has anyone faced the same situation? Any feedback would be appreciated to weigh the pros and cons.

Thank you so much!