Buy/Live in and Rent out vs Rent and Invest Elsewhere

[Jon E.]

Hello!

Need some help thinking through two scenarios since I am new to all of this.

The first is buying a condo (about $175k with $250 HOA), and living in it for about 5 years then renting it out afterwards. The monthly payments would be about $1250 if I put down 10% or $1100 if I put down 20%. Comparable rents in the area vary from $1200-$1400. The condo has water included.

The other is renting out a place $1200-1400, and trying to invest out of state. 

From a rental investment standpoint, the property isn't something worth pursuing, given the low cash flow (if lucky, assessments and increases won't push this to negative cash flow). 

But since I would be occupying it for about 5 years, contributing my would-be rent payments towards the mortgage, does that change things?