Property use options

[Nicholas Shepherd]

Hello BP,

I recently purchased a home as my primary residence, but of course, the gears are turning thinking of a way to profit off of it. After all, that’s why we are all here right?

The home is located in Tacoma WA (unincorporated pierce county.) The lot is a long rectangle in shape and measures 4 acers. The parcel is zoned as a moderate density single family home. The area permits 6 dwelling units per acer. This allows us to add one more dwelling unit, whether that be another house, ADU, or converting the existing home into a duplex.

Generally speaking, what does BP think it would be better to do?

1. Divide the lot, develop, and sell the new property? Obviously taking a hit on the value of the existing property because it will no longer have a large yard. (this option would be the most time consuming and expensive up front, but could potentially have large rewards)
2. Convert the existing property into a duplex, fairly easy to do because of the layout of the home. (Property is on septic so the city planner said we may have to contact the health department for approval to keep it on septic because it can only support so many people)
3. Add an ADU to the back yard (there is already a concrete foundation for it) and rent it out for monthly income. This option adds value to the existing home when we go to sell it.

Any advice or PRO/CONS from others in the Tacoma area, or anyone who has done any of the ideas listed would be greatly appreciated.

Thanks everyone,

Nick