Buying a Home or an Investment Property

[Quintin Smith]

Hello all! I am new to the forums and to real estate in general. I want to begin my investing journey in single-family homes but am torn between which path to take. 

My fiance and I live in a mid-sized city, where the average single-family home will run around 300-400k and could rent upwards of 1500-2000, depending on size and neighborhood. We currently rent and we have considered taking advantage of first-time homebuyer financing to purchase a home in our city, live in it for a couple of years to build equity, then renting it out while we live elsewhere. We realize that this is not the fastest way to get into real estate investing, but would allow us to take advantage of a hot market while living in a house versus an apartment. 

The other option is continuing to rent in our city, but looking for cheaper homes further away to purchase an investment property. My concern here is managing a property further away, and finding a good deal on a house that is cheaper (100-150k). I feel like buying a house in this range may be a wreck and create more headaches than upside. 

Our long-term goal is to own several homes that produce passive income while we maintain our careers. I'd love to hear some perspectives on entrance strategy in this case. Thank you!