Am I making a mistake?

You and your wife need think through the rental issue (privacy, liability insurance) to make sure that you are both on the same page. Were I you I would make sure you could manage the home expenses even if you didn't rent the auxiliary space. Have the home inspector look at that space from a building code point of view and check out your local tenant protection laws.

In my old 'hood an architect of our acquaintance let a small garage apartment to recent graduates in his profession. The advantage is that they shared a similar value system, and the renters valued their reputation. ;) Part of the bargain, doubtless, was that they kept their heads down. Everyone knew, of course, but everyone liked the young couples.

Pick the right tenants and you never need house-sitters.
 
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