New Investor Here: Should I begin in state or out of state?

[Arthur Pogosian Rozin]

Hello Biggerpockets community!

My name is Arthur Rozin and I''m a new investor who is currently renting in Los Angeles. I am a bit conflicted at the moment. I am having trouble deciding whether I should start house hacking here, rehab some of the units, and use that equity to invest out of state OR to begin my real estate investing career out of state.

If I were to househack here I would either do a FHA or 15% down payment and try to buy property where I can build an ADU. My only worry is the large amount of capital required to get started here, even if you use creative financing. Does househacking make sense even in hot markets such as LA?

All insight is gratefully accepted and appreciated!

Cheers!