one property in HCOL vs mulitple out of state

[Maddy Thum]

Hey folks, I am in a dilemma about which one is better in the long run. Little background about me, I have a property in HCOL as primary residence which I currently house hack and I have a rental property out of state managed by a property manager. I have enough money saved to buy a house with 5-10% down payment as primary residence and also house hack in HCOL area or that money can buy two rental properties out of state with 20% down payment. With the current interest rates and house prices, both the rental properties either break even or I have to pay like insurance, taxes and other stuff out of pocket.

I was leaning towards primary residence as I can house hack and get more property for the money I have. But again, not confident on what is the best approach in the long run.

Cheers!