What do you think i should do though?
Make sites for local businesses.
get internship
develop own product (which i think i can)
Which one of these or combination will help the most to build credibility and compensate for the lack of experience in the field.
I'd try to land an internship first. The benefits of actually having a 9-5 job will help you "level up" to future employers. Sometimes there is stigma with being just a contractor/freelancer, and you'll never learn how to work in a team. When you're doing all the work, you'd never know what it'd like to work with designers, product managers, project managers, etc. These are all invaluable skills and skills/experience that you don't have and will never be able to learn until you get a "real" job. The other benefit is, you will be able to learn on the job. You'll be getting paid to learn, so what's not to like?
If you need extra money, do some local freelancing. I wouldn't try to tackle anything too big because most freelancing jobs suck due to unreasonable client expectations. You'll need to be a unicorn. (Not to be confused with consultation).
And always find time to work on your own project. This is not negotiable. Invest in yourself.