We (2 adults, 1 teen) are traveling to Iceland for 6 days/nights in July. Our first visit to Iceland! I know the ring road cannot be done in this amount of time, so we're going to focus on attractions along the south coast. I'm looking for advice on where to stay.
Our flight lands at KEF at 7am, so we've booked a remote cottage near Jokulsarlon for our first two nights -- planning to do a glacier hike and/or kayak at the glacier lagoon, Diamond Beach, and hiking at Múlagljúfur Canyon (also possibly Stokksnes if time allows). I assume we can stop at Vik area sites and waterfalls (Skogafoss, Seljalandsfoss, etc.) on the drive out and back. Staying in Vik is not really an option due to lack of affordable accommodations (trying to stay at or under $300/night). I cannot decide if we should spend the remaining 4 nights near Selfoss for easy outings to golden circle (or more south coast adventuring), or if we'd be better off doing 2 nights in that area, then 2 nights in Reykjavik. I want to make sure we see and spend time in Reykjavik, just don't know if it makes for a good "hub" for daytime adventures.