Double-check my potential house hack deal, please.
I just finished running the numbers on a duplex I'm looking at. My idea is that I want to purchase the property with an FHA loan (3.5% down), fix it up, and then live in one unit while renting the second unit. Once the original loan is seasoned enough, I want to refinance the property with a large enough loan that I can retrieve all (or at least most) of the money I invested. My results using the BiggerPockets BRRRR Calculator are below.
Normally, I would pay close attention to the top section which suggests a $708 monthly cashflow among other great info. However, if I'm going to live in one of the units, should I be more interested in whether or not the rent of the remaining unit can cover my monthly expenses? The local market suggests I can charge $1200/mo for that unit. This will cover my monthly expenses as shown above, allowing me to live there for free, AND give me $72.75/mo in profit (really $332.75/mo profit since I'll be managing the property). Am I looking at this correctly? Or is there a bigger picture I'm missing?