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You can't think small in this business, or any business. Even from day 1 when I had no idea what I was doing I bought some domains and hosting and didn't mess with freehosts.
You've got a tonnes of low quality blogs that you can use as a source of links to something much bigger.
Buy a domain (.com or .net preferably) in the either the best niche you know and enjoy writing about or the most profitable.
Make 10 blog posts the first day (at least two paragraphs each and not too keyword spammy). Do your blog submissions as usual. Make some blog posts on your FH blogs in that niche that link to your new domain. Basically promote your new domain in those posts like you do a sponsors site. Also post some sidebar links in your FH blogs to your new domain. Don't do too many all at once though if you are talking hundreds of blogs. Bit at a time and vary your anchor text up.
Make one quality new post every day or every second day. I do a months worth in advance and schedule them in wordpress. Keep getting more hardlinks (preferably a-b-c). That's it. Keep it high quality.
You sound like a hard worker so doing that for just one domain of your own shouldn't be too much of a stretch and $10 or so for a domain and a little more for hosting is not much of a risk.
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"There is no other way to see a thing except to look at it" - fatfoo
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