Newbie looking for feedback/help on a multifamily

[Elliot Marszalek]

I'm in the process of looking for my first RE deal and found a multifamily that I believe has potential but have some questions. The building is currently a 3 unit but has building plans to renovate and make it into a 4 or 5 unit. First I'm not sure if there's anything from a legality aspect that would prevent me from living in the 4th unit that's currently gutted and needing renovation. I don't mind sleeping on the floor in a sleeping bag right away but if It wouldn't be allowed I'd have to live in one of the 3 finished units while renovating which would cut into the profitability due to the loss of rent income. The overall goal with this property would be to live in it for the minimum required time to qualify for the loan while renovating and as soon as all 4 units are finished and tenants are in line  I would either move out or start renovating the basement into a 5th unit which there are plans for but because it switches it from residential to commercial I can't do initially to my knowledge.

Background info: Currently working a full time job 40-60hrs a week, making ~$500 a month in dividends from stock investments reinvesting it with a DRIP program. This is my first home purchase which is why I'd be living in it; avoiding the 20-25% down payment and if I can live in the unit that needs renovation while I do it I would be just about breaking even on the mortgage and expenses (assuming I can't get it for less than list price).

I'd love to hear any feedback good or bad so I can keep learning. Analyzing deals with variables like this one unit not being renovated yet is tricky.

Property Numbers
Current Income: $23,400
Current Expenses:$10,896
Profit:$12,504
List price:$220,000

Projected After Renovations(renting all 4 units)
Income:$40,800(includes Laundry)
Expenses:$18,160
Profit:$22,640
ARV:$240,000