I guess AH first is the safer option, while mining/masonry first could lead to a faster buildup followed by economic recovery. Either way is fine for me.
The more I look at it, the more I think we should move around a bit before deciding on where to settle. Even in regular Civ I might consider it given this start, but especially in FfH with the starting settler bonus and expensive worker techs.
Our current location requires 3 different techs for its resources, has no space for farming (before chops), too much water and only two hills. Not terrible but rather unimpressive.
We could move W, off that peninsula we're on, to see if we can get a more land-based capital. It would also block off our starting location from everyone else, so we can settle it later at leisure. There's plenty of forest W of us as well and I think it shouldn't be hard to do better than what we have, tile-wise.
On civics, do we want Nationhood or stick to Religion? Are we going for an early religion?