House Hack ADU & ADU Seattle, WA

[Alexander Reid]

Hi everyone, 

I am looking for my first rental property. I am in my early 20's and plan to use the house hacking strategy on a SFR and take advantage of new laws regarding ADU/DADU in Seattle. I am actively looking for homes zoned SF5000 or greater with finished or unfinished basements and potential for backyard cottage. I was originally sold on a duplex or bigger for my first purchase, but the idea of a smaller 1bd/1 bath basement unit for myself and two 2 bd/1 bath units (backyard cottage and main residence) seems more appealing.

Besides the endless first rental property questions, these are some things I am trying to figure out. Anyone with experience with ADU/DADU, please let me know what you think!

Future of Seattle rental market (especially for a newbie) with tenant friendly laws and regulations such as COVID/eviction rules?

 Pre fab construction versus traditional construction for DADU? 

Seattle city website says pre approved DADU designs were submitted, but I cant find much on which builders? I will be in the area next week with several appointments with local builders.

Spending more for 2bed/1 bath DADU or cheaper 1bed/1 bath? In my limited experience opinion, the backyard cottage would need a "single family house feel" with separate yard, parking, and entrance to attract people who need two bedrooms versus single younger tenant who might not care so much about the "feeling" and only needs 1 bed. 

Roll all utilities together and charge tenants a flat rate or install separate meters? That being said, logistically this seems like a nightmare! 3 units with trash and recycle bins on a Seattle residential street?

Thanks, 

Alex 

[Michael Haas]

@Alexander Reid what does your financing look like for the DADU? $150,000 -$300,000 is a good rough ballpark cost to build the maximum allowably sized DADU (1000 sqft in SF5000 lots that are larger than 3,200 sq ft lot size, or 650 sq ft in LR zoned lots). 

Pre-approved designs haven't come through yet, but some builders like MyKabin have a set book of designs that have already gone through engineering with the city to speed up the process and lower your cost vs. a custom build. 

We own a half dozen rentals in Seattle, and although we've been focused on basement ADU's so far the new DADU regulations are compelling. We're looking to break ground on 2 DADUs, one on an existing property of ours and one on a new purchase, in 2021.