This included necessary updates and improvements that significantly increased its market value.

Your loan may be dependent on the income you are getting from the other side.

.- Now looking to sell around 600k (redfin says its worth over 650k, not sure), with 3.3% 30yr fixed loan w 285k loan still, looking for around 315k+ profit.

Escrow and reserves is $440 a month, I was thinking of offering payments of $1k a month and 5% interest for the 5-10 year loan term?

However, my loan was an ARM, and is currently at 5.5%, but will be resetting within the next year to market rate.

You can also provide the appraiser a list of improvements you have made to the property for reference. 

Is today's market and interest rates worth me utilizing an FHA loan for what some people have referred to as "house hacking" and beginning an investor path that way?

One thing to be aware of is that if there's a loan, moving the property to an LLC may technically allow the bank to call the loan.

He bought the home with no money down, Home town Heros program and creative finance, then we developed the property by improving it with electrical upgrade additional meters and more bedrooms.

To me paying 1% extra on a loan for 3 years and saving some money on down payment not worth the risk.