House Hack vs Out of state investment for First Home Investor.

[Anton Filiptsov]

I want to purchase Multi Family property.

Initially i started to look for House hack.
Giving the prices in MA overall, there is no way how house hack can be profitable, i tried to calculate 1% rule, and none of the properties were able to make it.
Cheapest multi family and single family, in average areas is 500-590k$

I am pre approved for 600k loan.
My ideal loan is around 300-500k.
I can put approximately 20-40k down.

And now i am at the point where i can have 2 option:
1 - House hack -  Look for Providence RI properties. (I haven't found any good options in NH for house hack).
I can use FHA loan and instead of 20% down, i can put 3-5% down, and it will increase my byuing power to 300-500k.

2 - Buy out of state property, for example in OH or MI, which will cost 100-140k and loose House hack ability.
And continue paying my rent in Waltham.
Because i can not use FHA out of state, i need to put 20% down, so my goal it so be within 160k range. 


Do you have any suggestions or tips what i should do in this scenario?
Out of state looks way better on numbers, but i wont move there, and i will still need to pay my rent, that makes everything worse.

As well as prices for housing around me ( I Live in Waltham MA) are nonsense. House 25min away from Boston cant cost 800k.

And based on my search its either Providence or Worcester / Springfield. But i think Providence is way better.