Most people choose to scale that way.

I know many that do this approach thus no need to season the loan or have sellers not choose your offer because it has an FHA loan attached to it. 

Lastly I would recommend taking your time in choosing your markets to invest, no need to rush.

Get lots of estimates for your first to make sure you are choosing the best members for your team - I chose to go with one contractor for all, which probably cost me more, but made the whole process run more smoothly only having on GC to go through.

I’m still choosing to invest in my area because of my proximity to larger metropolitan areas and a high quality of life.

Which one should i go b/w Builder Lender Vs Outside Lender to choose for New Construction SFH Investment property financeBuilder Lender:Rate(Investment Property 30yr fx) - 4.625%DownPayment - 20%Total Closing Cost - 11816Credit (Seller + Lender) - 7500(6500+1000)Net Closing Cost - 4316 (11816-7500)Outside Lender:Rate(Investment Property 30yr fx) - 3.875%DownPayment - 20%Total Closing Cost - 12k(3-4%)Credit - 0Net Closing Cost - 12K

Which one should i go b/w Builder Lender Vs Outside Lender to choose for New Construction SFH Investment property financeBuilder Lender:Rate(Investment Property 30yr fx) - 4.625%DownPayment - 20%Total Closing Cost - 11816Credit (Seller + Lender) - 7500(6500+1000)Net Closing Cost - 4316 (11816-7500)Outside Lender:Rate(Investment Property 30yr fx) - 3.875%DownPayment - 20%Total Closing Cost - 12k(3-4%)Credit - 0Net Closing Cost - 12K

You and teh lender typically try and choose the better of the quotes within reason of costs. 

Also, When you're choosing your area it's important to make sure there are options in each area, as long as you have options, it doesn't matter as much. 

Instead of going off of a hunch, you can do this research beforehand to determine if your market is viable for generating motivated seller leads and if you're targeting the right demographic.Early on in my career, I would choose a market and zips based on what I heard at my REIA or was in proximity to my home.