Potential first property. Live in Duplex financed FHA. Thoughts?

[Joshua Frahm]

Potential first investment property

Duplex: Both large 2 bed, 2 Bath, each has a garage, large yard, in single family neighborhood, separately metered, laundry in each, needs very minimal work, pretty much turnkey.

$340K - Potential purchase price

$11,900 - FHA down payment 3.5%

$2,432 - Monthly Mortgage (Includes: PMI, RE Taxes, Insurance)

$29,178 - Annual Financing

$3,500 - Monthly Rent (both units if I was not living in one)

$42,000 - Annual Rent

Operating Costs:

$3,264 - 8% Vacancy Rate

$4,080 - Management 10%

$2,040 - Maintenance 5%

$2,000 - Utilities Water and Septic

$11,384 - Total Operating Expenses

Annual Cash Flow: $1,162 (Note: Once I refinance the property in the future and get rid of the PMI of $228/month it will increase cash flow to $3,900)

Cap Rate: 8.92%

CoC first couple years with PMI: 6.51%

Budgeting for management costs but I will be managing the property myself for at least the first couple years.

Thoughts?