Rent one side, live on the other side, how to make $$ from this?

[Dow Yang]

I recently got interested in real estate investing, so I've been roaming around bigger pockets. I've noticed that a lot of people talk about FHA 3.5% down payments on multifamily homes living in one side and renting out the other side as a start to real estate investing.

I've been doing some research and calculations on a few MFHs and I always end up being negative, therefore I'd have to help pay for a part of mortgage/fees since the person I'd be renting too isn't paying enough rent to cover everything. Here is an example of my calculations. 

House costs = $170,000	DownPayment=$5,950 (.035*170,000)	Interest rate = 5% (30years)
Property taxes = $149.67 ($1,796/yr)	Mortgage = $880.66 ($10,567.87/yr)	Maintenance = $141.67 ($1,700/yr)
Insurance = $104.17 ($1,250/yr)	Vacancy = $125 ($1,500/yr)	Property manager =$125 ($1,500/yr)
Monthly rent = $1,250 ($15,000/yr)
Total expenses = $1,526.17	Total Income = $1,250	Net = -$276.17

I used 10% of the income for both property manager and vacancy just to be safe. If I was to actually buy the MFH i would do the repairs by myself, so i wouldn't need a property manager, but i left it in the calculations just to see what would happen if I included it, I would still be negative even if I excluded it. Maintenance at 1% of the house value (not sure about this amount...) Insurance at $1,250/yr as a guesstimate... The tenant would pay for all utilities. I used an online calculator to do the calculations for me.

So I guess my question is, how are people making money/coming out on top from FHA 3.5% down? Are they just getting super good deals? Am I doing my calculations wrong? Am I over estimating certain expenses?