Look at 2 to 4 unit building that you can use your mortgage slots for.. cash flow is better and your there to over see it.. nothing worse than being 3 states away and your having issues.

Sale price: $800,000 New Construction DADU in Seattle's Crown Hill Neighborhood What made you interested in investing in this type of deal?

**When I refer to ADU I am referring to an ADU in the house, not a DADU (detached accessory dwelling unit).

I've found nice pool tables there too, as well as video games and slot machines....

That's how my wife and I built the foundation of our real estate portfolio. 10years later we own 10 properties and it gave me the ability to chose to exit the corporate world.Here is the thinking behind buying the duplex in the first place and the results.GoalsStart building a rental portfolioNeeded a place to live and did not want to rentSafe locationSubsidized living (house hack)GaragePrivacyAble to commute to workValue add play that I could do myself or hire a contractor without breaking the bankSolutionProperty: DuplexCondition: Cosmetic rehab & rents under marketNeighborhood: 1970ish, safe, long but doable commuteGarage, big yard & subdividable – will build DADU eventuallyDid not match any of the of the “standard” rules.

now to rinse and repeat...If your jurisdiction allows for your to condominimize your ADU you could legally create two separate "fee simple," parcel numbers out of the main house (+ attached ADU) + the DADU in the back.

Sounds like if you free up 1 conventional slot, you can buy 2 financed properties with a 1031 exchange. 

Another great opportunity would be to build a DADU (detached accessory dwelling unit, essentially a carriage house) if you can get the right owner-occupied property that are zoned R80-R6, RM2-RM20-A, RM40-RM100A, OR20-OR40A and ORI and ORI-A AND in an historic overlay.

@Daniel UlieIn our region I'd say the most powerful strategies to get started with are HouseHacking, ADU / DADU Development (or BRRRR), STR, Flipping, Townhome development, in about that order.

My big question about building a DADU on a SF lot is this: Does the value of the original, and very nice home decrease because the lot size for that home has decreased?