Relocate and House-Hack, or Invest Long Distance?

[Thomas O'Donnell]

So I'm currently in a dilemma. I have about $13,000 that I can use for my first rental property. I have been strongly considering moving to a cheaper more affordable market and house-hacking (I currently live in the CA Bay Area and do not work in tech). I had previously chose Columbus, OH and was planning to move and use a FHA to get into a duplex or a SFH. However, moving expenses would be about $3,000-$4,000 which would cut into the cash that I have, and I would be making less income after the move. I wish I could house-hack in my own market but it is way too expensive.

Very recently I have been considering the idea of staying here, where I currently live with my parents rent free, and getting a new higher paying job (if I can). Then, using my cash I have saved and new income to put 20% down on investment properties in cheaper markets that might need to be fix and flips or fix and holds. If I was to do this, I would probably need to invest where properties are below $75k and I am able to add value through a rehab (with possible use of a HML).

So I guess the question is, should I move now, eat the moving costs, make less money and house-hack whatever I can…. Or should I stay here, up my income, and try to invest long distance with flips or fix and holds (will be a lot more difficult to do).

After a flip or 2, I feel I could potentially have enough to move to a market that I would want to stay in with more money. I really want to get my first property and never look back as I start my REI career. I am just curious if any of you can share some insight on a similar dilemma or maybe have some advice. Thank you all!