First time investor, house hacking, FHA loan, analysis check

[Wayne Stevens]

Hey everyone! I'm getting ready to pull the trigger on my first investment and just want to double check some figures with the pros! I would love some advice and please feel free to critique anything that I may have messed up or missed. Thanks so much in advance! I LOVE Bigger Pockets! (pun intended) 

Quick rundown:

I am going to be house hacking this property for the first year. (FHA loan) This property has a couple options to house hack as it has an apartment upstairs (3 bedroom, 1 bath) the main floor (2/3("bonus room") bedroom, 1 bath) and a basement (1 bedroom, 1 bath, no kitchen -yet-) Looking for opinions on how to do this?? The owner of the house right now rents the upstairs apartment for $1600 and the main floor WITH the basement for $2400. (IF IT'S AN ISSUE WITH ME STAYING IN THE BASEMENT, I WAS GOING TO TAKE THE UPSTAIRS APARTMENT AND RENT OUT THE MAIN PART OF THE HOUSE WITH THE BASEMENT)

My plan on managing this property:

This home has a finished basement 1 bedroom, 1 full bath, living room with OSE, all pluming is done to add a kitchen.  I am actually planning on living in that for the first year since I am taking an FHA loan. (I'm being told that it is illegal to have 3 units in a single family home, however no one needs to know that?) Also I only plan on having it a 3rd unit as I live there and then opening it up to the main floor as additional bedrooms/bathrooms and living space, which I'd be able to bring in an extra $200-$300 a month?? *** at this time I would then hire a property manager to manage this property and the additional $200-$300 a month should cover most of the expense for that, 8%-10% or so, correct?

Here's my analysis:

Purchase Price:$320,000.00

ARV: $325,000.00

FHA: 30 years, using 4.5%

Total operating expenses:	Mortgage expenses:
Vacancy: 5%	$190.00	Repairs:	$190.00 5%
CapEx: 5%	$190.00	PMI:	$250.00  (might be high, but playing safe?)
Insurance:	$120.00	P&I:	$1,564.64
Property Taxes:	$758.33	Misc:	$100.00 (just because)

Monthly Income: $3,800.00	Monthly Expenses: $3,362.98	Monthly Cashflow: $437.02	Pro Forma Cap Rate: 7.39%
NOI: $24,020.00	Total Cash Needed: $14,200.00	Cash on Cash ROI: 36.93%	Purchase Cap Rate: 7.51%

1%/year
Expense Increase

1%/year
Income Increase

1%/year

Property Value Increase

I'm hoping I did this right! I'm super excited to get started! Thanks again for any replies, advice and critiques!

-Wayne