What will be smart move in tax wise?

[Sejin Kim]

Hi BP family! 

If anyone can give me good idea I will really appreciate that! I want to know what will be smart move. 

one income family, married with 2 kids, just bought a house at 790K, monthly mortgage is 5300 including house insurance, property tax. We are thinking either renting whole house I think we can charge between $3000 to$3500 per month. Or we can rent extra  rooms ( 5 bed/3 bathroom currently one roommate pays $800) at $600 to 700, so total rental fee will be $1400 ~$1500 from renting two rooms. So if we rent whole house then we will pay less mortgage, however I am sure that we need to pay tax from income from money. If we rent two rooms then we will pay more mortgage, however our income is less so after tax, our net income might be  better?? I am not sure. Any tax expert here? Thank you so much! 

[Basit Siddiqi]

To me this is not really a tax question.

Would you, your spouse, your kids be okay with other people living in your house?
Your daily life will be much different when living with other people.

Personally, I think if you have a wife and kids, and can afford a $790,000 House, house-hacking a SFH is out of the question.
I think the story would be different if you had a multi-unit house and there is clear separation between you and the tenants.

If you want to bring taxes into the question, you have to report rental income regardless if you rent the whole house or a part of it.
Your are entitled to deductions to offset the rental income.
Most likely, won't pay tax since the depreciation on a high cost property would eat most of the income.

Best of luck.