Newbie Investor from California needing your strategy advice

[Roushel Asuncion]

Hi Everyone! A newbie investor here and would love your advice.

Hubby and I live and work in Silicon Valley where the median SFH price is 1.1M. We are currently renting, have $20K cash saved up and about $150K in retirement .
We are thinking to use our cash and some funds from our 401K to buy 2 properties out of state that are cash flowing $300/mo each.

Then use this income and hopefully some equity on these 2 properties to purchase a duplex to live in and rent out here in Silicon Valley using FHA loan.

Is this a good strategy? We know the ideal situation is to get rid of our rent but we are discovering if we want to get started in RE is to start out of state.

Thanks so much for all your input!