Help me analyze this fourplex!

[Andrew Saquing]

Hi everyone! Thank you in advance for your help. I am very new to investing so any criticism is appreciated. I will be a first time homebuyer trying to qualify for the FHA loan putting 3.5% down

Property is a fourplex in Southern California. The specs are:

$420,000 fourplex
3.5% down 5% interest 360 months
$14,700 down
monthly payments-$2,176

3 bd 2 bth- $1700/month
3 bd 2 bth- $1700
3 bd 2 bth- $1700
2 bd 1 bth- $1300

So gross rent income is $6400/month. However, I need to be living in a unit to comply with the FHA loan so effective gross income is $5100/month.

$5100 x 12 - 50% operating expense = $30,600 NOI

$30,600 NOI/ $420,000 price = 7.3% CAP

$30,600 NOI- $26112 mortgage = $4488 Cash flow in the first year, or $374/month

$4488/$14700 down payment= 30.5% return first year.

After the first year, however, I will be moving out so that will be an extra $1,300/month in rent so...

$6,400 x 12 = $76,800 gross income

$76,800 - 50% operating = $38,400 NOI

$38,400- $26,112 mortgage = $12,288 cash flow in the second year, or $1,024/month

$12,288 / $14,700 down payment = 84% return in second year.

Is this a good deal? What am I missing?

Like I said, I am very new to this so any help at all is appreciated. Thank you for your time