Building ADU/DADU in Seattle

[Michael Valle]

Hello!

I'm a beginner investor looking to get advice on whether or not it is a good idea to build an AADU and DADU on our property in Seattle.
Rent for the current SFR goes for around $2300 in the market and our plan with the two ADUs would be to rent them out and hold long-term.

It makes sense for developers to purchase an SFR and build two ADUs then condo each to sell - but in our situation, would building the ADUs to rent and hold make sense in the long run? What are other questions we should be asking ourselves? Thanks for your help!

[Sherief Elbassuoni]

@Michael Valle, it depends on your goals.

Some investors prefer to build the DADU, condo it, sell DADU separately to get cash, and hold main house. (i.e. if you built for $300K-$350K, and sold for $650K-$750K on average, after subtracting some financing, holding,... fees, the difference will yield you a few hundred thousand, which will be great cash boost

Some other investors prefer to sell the main house (typically old) and keep DADU.

You can keep both, if you paid for DADU cash/Saving/....

Run the numbers for the three scenarios, and go with the option that makes the most sense