No you are not correct :( 
you not need to create start state. the first state with - sign is the start state. Also a,b label means a or b but not ab 
there is a theorem called Arden's theoram, will be quit helpful to convert NFA into RE 
What is Regular Expression for this NFA? 
In you NFA the intial part of DFA:     
step-1: 
(-) --a,b-->(1)   
means (a+b)
step-2: next from stat 1 to 2, note state 2 is accepting state final (having + sign).  
(1) --b--->(2+)
So you need  (a+b)b to reach to final state.   
step-3: One you are at final state 2, any number of b are accepted (any number means one or more). This is because of self loop on state 2 with label b.    
So, b* accepted on state-2.  
step-4: 
Actually there is two loops on state-2. 
So, In step-3 and step-4 because of loop on state-2 run can be looped back via b labeled or via aa*b ===>  (b + aa*b)* 
So regular expression for your NFA is:    
(a+b) b (b + aa*b)*