The location of your college, in the end, won’t matter too much - if you move back and apply to many companies, you should get some interviews. Transferring for location alone would be a pretty big waste.
The bigger problem seems to be that you expect to not get high grades or do any work on CS outside of class. Many companies will look for the latter especially, combined with prior experience. So even if you have to intern locally, do it. Experience will be especially important to make you attractive to companies in your case.
It should be noted that companies generally don’t put much stock in grades at all. It’s a small indicator and bar you have to pass (3.0 or 3.5 usually) plus how much coursework you have done. After that, it’s much more about your technical skills and interview abilities.
Good luck!