House Hack or Look for a Deal?

[Brett Avelin]

Own a single family with detached garage.  Been looking for a multi family or bigger to do short term rentals or combo of short and long.  Just realized our garage could be a perfect 420 sq ft apartment that would rent for $800-1000 or we could get Air Bnb tenants all summer in there, either way would bring in about $10,000 per year.  I am handy but would hire out most of it to a carpenter who I know well, so am guessing the apartment addition would land in the $40,000 range which I would pay cash for.  Would have no mortgage compared to buying a property, just higher taxes of course, and my wife thinks it's a great idea as we had an apt in our last home and rented it for seven years mostly really enjoying the community of having a tenant.  

Can anyone see pro's/con's to either way of going, the house hack/garage apt or jumping in to the investing game with a multi family?

Brett