I'm currently trying this too. Start in Seyda Neen, like you do, and walked north. I guess in my head I have a backstory about being somehow picked up by the empire as a curiosity for the Arena? But escaped before he made it to the IC, then was recaptured and sent east. A naive barbarian type trying to make his way off this crazy Dark Elf island (Vvardenfell). The trip north was difficult; died a few times since I didn't want to buy gear, so relied on what I found for the most part.
I went with a Nord and the Barbarian default class, which seems pretty reasonable. There's some armor redundancy, but I like the look of crazy mismatched armor sets and love the fact that MW allows you to do that.
Axe is nice, and I'm sure will pay off once I kill a berserker - but it's a really effective skill anyway. Block is a lifesaver (wish you could block without a shield).
The most difficult thing I'm finding is ... well, the economy of it all. I went up to Thirsk okay, and then realized I had nowhere near enough gold, and there's only a couple merchants there, who will *not* buy the only stuff I'm in a position to get - namely, horker tusks and wolf pelts. So I can't make gold, which means I can't buy those silver Nordic weapons or make those wolf/bear armor sets (if I could take on a snow bear/wolf, which I'm assuming I can't at lvl 3).
Also, you run out of horkers to kill near Lake Fjalding pretty quickly, and then it's time to play 'dodge the Riekling' if you want to find more.
I haven't even gotten into the trouble you're talking about, i.e. repair hammers (which would be nice to find, really, since Armorer is a skill I'd like to work up).
I guess I'll try to keep hunting animals until I have a decent supply, then make the trek back to Fort Frostmoth and see if anyone there will buy them. Kinda too bad, I was hoping I could stay around Thirsk for awhile.