STUCK! Seeking encouragement for which route to take.

[Amy A.]

I'm looking to start my RE investment journey. I've hoarded cash, am debt free with a credit score of 815. Ready to go. I currently rent. I've heard three schools of thought as to where to start. What is your opinion given that you live in SD, too?

1. Always invest in your principal first. Spend below your means, house hack, take out equity, buy smaller investments next.

2. Start with smaller in-state investments, rent them out, be your own landlord, allow the income from those to fund your principal purchase in San Diego.

3. Invest smaller, out of state, allow time for those to build to then fund your principal purchase in San Diego.

If I do option #2, secure a renter to cover mortgage, will that allow me to get approved for more to purchase next property or will it tie me up in the eyes of a lender, and then prohibit me from being able to buy principal in next 6-12 months?