Owner Occupied vs. Out of State for First Deal

[Hannah Smith]

Hi all! Happy New Year!

I am fairly new to BP and have been researching and saving in anticipation of buying my first property this year. I currently live in Raleigh, North Carolina / The Triangle Area and consider my market decently expensive with lower returns than I could perhaps obtain elsewhere.

Does anyone have any thoughts/comments with regard to purchasing a property in the Triangle that is owner-occupied (myself) and renting out part of it and eventually converting it into a full rental that I no longer live in OR investing out of state with the potential for higher returns?

If the property is occupied by me I can have a very low down payment and a great rate. If I buy out of state I know I'd have to put down more money but it might be a better investment in the long-run. I've been looking at properties in the Triangle for several months now and cannot make the numbers work from an investment perspective. 

Any thoughts or advice would be appreciated. Thanks all.