203K loan purchase, rehab, and refi deal

[David Hunter]

Noob here: Trying to figure out if my plan for my first primary residence home will be a good deal.  

I'm thinking about putting in an offer on a 3 BR/1Ba HUD home in Northern NJ with a plan to use a 203K loan for the reno. The offer will be at 240K and quick estimates of the reno will be about 100k. By the end, of reno, it will be a 4BR/2.5 bath. Estimated ARV is between 400-425K.

With those estimates, obviously there is at least 60k of forced equity.  But I'm not sure if that is a worthwhile deal.   In the future, I'd like to use the equity to move into investing in RE for cash flow.  But the wife says I have to get her a primary residence first :)    What do you experienced investors think?