You may want to consider not cutting the hull at all, but rather "sinking" the underwater hull into your display base. Not only do you forego the work of cutting, but you retain the ability to display the entire hull, should you have a change of heart later on. I did this for a 1/350 hull, for a waterbase display. I went to a craft store and bought foamboard to make my base. Foamboard comes in 1/4" and 1/2" thicknesses, I used two layers of 1/4". I marked the plane of the hull at the waterline onto the foamboard (the marking is a procedure unto itself), and cut it out with an X-acto. The ship was placed into this cutout, adjusted a bit here and there to ensure zero list and trim, and I added the water around it. Heres a (rather crummy) photo of the result.
I'll state here that this model was already a waterline hull of sorts, but it sat too high in the water for my taste, so I recessed it about 5/16" into the foam board. However, the method will work no matter how deep you want to sink the hull. Provided you mark the cutout accurately (again, this is a procedure itself), this might work well for you, and leave you the flexibility of how you want to display. If you do want to go this route, I have a method for marking the water plane onto the foamboard (or whatever you want your surface to be for that matter). I'm sure there are others on this forum who would gladly offer up their advice on that as well.