Help Me Analyze My First Deal

[Michael Vu]

I am looking to purchase my first rental property (fourplex with four 1 bed/1 bath units) using an FHA loan and house hacking. At first, I thought it was a great deal, but the more closely I look at the numbers, I am beginning to think otherwise. I'm not sure if this is just analysis paralysis and fear of your first deal. I have run the numbers with two scenarios: house hacking one unit and fully rented.

Currently, one of the units is a long term tenant on month-to-month who's rent is low. She is a very elderly woman and I don't know if I would want to raise her rents. The units that would be rented not including the one I will be living in are rented for $725/$725/$600. Owner pays for heat and water.

House Hacking One Unit

PURCHASE		DEAL ANALYSIS
Purchase Price	$250,500.00			Net Operating Income	$971.50
Down Payment	$8,767.50	3.50%		Monthly Cash Flow	-$306.50
Closing Costs	$3,000.00			Cap Rate	4.65%
Mortgage	$1,278.00			Cash on Cash Return	-31.26%
INCOME
Monthly Rent	$2,050.00
EXPENSES
Property Tax	$426.00
Home Insurance	$85.00
Vacancy	$102.50	5.00%
Maintenance & Repairs	$102.50	5.00%
CapEx	$102.50	5.00%
Heat & Water	$200.00
Electricity	$60.00
Total Expenses	$1,078.50

Fully Rented

My assumptions with fully rented are rents for $725/$725/$725/$600.

PURCHASE		DEAL ANALYSIS
Purchase Price	$250,500.00			Net Operating Income	$1,647.75
Down Payment	$8,767.50	3.50%		Monthly Cash Flow	$369.75
Closing Costs	$3,000.00			Cap Rate	7.89%
Mortgage	$1,278.00			Cash on Cash Return	37.71%
INCOME
Monthly Rent	$2,775.00
EXPENSES
Property Tax	$426.00
Home Insurance	$85.00
Vacancy	$138.75	5.00%
Maintenance & Repairs	$138.75	5.00%
CapEx	$138.75	5.00%
Heat & Water	$200.00
Electricity	$0.00
Total Expenses	$1,127.25

While house hacking, the numbers say I will be -$306.50/month. While fully rented, the numbers say I will be at $369.75/month. I find these numbers lower than I had originally anticipated and was hoping to make more closer to $200/door when fully rented. Is this just the nature of using an FHA on a property and the fact that cash flow for FHA loans won't be as attractive as conventional?

Would you consider this a good deal for my first property? How are my calculations?

Thanks for the feedback!