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