Buy to "live in", or to rent?

[Henry Bat]

I've been saving up a good amount of cash in the last few years and I'm thinking of buying a property.

I live over in LA where most houses are generally expensive. I'm tied to the area for business, so I'm not looking to move atm. I've been thinking about these two scenarios for how to use the saved up cash:

- I could go the traditional way by taking out a mortgage and placing 20% down. Then live in it/try to get some roommates to help 'house hack' it. 

- Or I could take the cash and buy an income property in a different / less expensive city. 

Any thoughts on what way I should go?