On the 5-10 ppl mark I've have a good think as to whether own office is the right answer. At that scale I'd rather go for high end indian outsourcing.
>We have had great experiences with Indian developers(contractors) in the past
If you have 5 __named__ individuals willing to join that you trust then yeah - do it. You'll struggle to beat that ROI elsewhere. If you don't have specific individuals in mind...I'd be cautious.
My own experience with indian outsourcing is if you ask them to fetch you the moon then they'll say sure. And they'll make a legit 100% good faith attempt to do so. 10/10 for enthusiasm...but you gotta make sure they're charging at the right enemy.