Garage Living House Hacking

[Huy Huynh]

Hello all, 

I recently got a property with a 3.5% FHA loan w/ 4 rooms and a garage unit that is attached to the house but there is no entrance to the main house. After some research, I found that renting out the house and live in the garage (after some renovations) would yield a $250/month higher return in comparison to renting by the room. My question is that what are the pros and cons if I rent out the entire house versus rent by the room. And is there a lease agreement that allows the owner to share part of the house with tenants.

Thank you

[Karen Margrave]

You will need to check. However; typically if the owner lives in the house and rents out rooms that have fewer restrictions. You will need to check with your local planning department. Here in Redding, CA there are so many homes rented by the room, due to a local ministry school, Bethel School of Supernatural Ministry. They have 3000 students and no dorms! Room rentals are a cottage industry here.