Buy a second home in CA vs invest in rentals out of state

[Steve Shin]

Any comments/suggestions would be much appreciated. Thank you all in advance. 

My wife has a condo in Carson, CA which she cash re-finance recently. We don't have anymore equity and the cash was returned to her mother. I have identified two options for us in RE below, let me know what you guys think.

1) We would rent the condo for $700-$1000 more than the current mortage and purchase another property with 5-10% down, however our mortage would be closer to $3500-$4000. 

OR 

2) We could stay in our current condo and use the money to invest in few properties out of state. Since we're both new to the real estate investment field, we would intially work with a turnkey investment property route. Please feel free to provide any recommended TKP.

Thank you all,