DADUs (Detached Accessory Dwelling Units) offer huge profit margins that make this one of the most profitable flipping strategies available.

What to Expect

A DADU (Detached Accessory Dwelling Unit) is a secondary living unit that is located on the same lot as a primary dwelling unit. DADUs can be used as rental units, guest quarters, or additional living space for family members.Seattle, Kirkland, Burien, Tacoma, and Bellingham all allow investors to “Condoize” a single family lot. What that means is that without splitting the lot into multiple parcels, you can sell units on the same lot separately! This can be a hugely profitable flipping strategy, allowing you to sell a home, ADU, and DADU to three separate buyers, getting three sales out of a single parcel!


Additional Income Potential: DADUs can be used as rental units, providing an additional source of income for property owners.

Increased Property Value: Adding a DADU to a property can increase the overall property value, as it provides additional living space.

Flexibility of Use: DADUs can be used as guest quarters, additional living space for family members, or rental units. This provides flexibility for property owners.



Zoning and Permitting Requirements: DADUs are subject to zoning and permitting requirements, which can vary by location. These requirements can impact the feasibility and cost of adding a DADU to a property.

Construction Costs: Building a DADU can be expensive, you’re building a whole 2nd home after all, and construction costs can vary depending on the size, design, and location of the unit.

Potential for Increased Property Taxes: Adding a DADU to a property can result in increased property taxes, as the overall property value may increase.



The potential ROI for a DADU can vary depending on factors such as location, construction costs, and rental income. While DADUs can offer an additional source of income and increased property value, they also require significant upfront costs and may impact property taxes.

Property Types

In Seattle this strategy works on Single Family Homes where the lot size is greater than 3,200 sq ft and the lot coverage is low (no more than 35% after completion of the DADU). Condoized DADU’s are most profitable in expensive neighboorhoods where the value of land is high, such as Kirkland, Queen Anne, Magnolia, Capital Hill, Wallingford, Fremont, Ballard, Ravenna, Maple Leaf, North Beacon Hill, Columbia City, West Seattle, ETC. 


DADUs can be constructed in a variety of styles, from modern to traditional. It is important to consider the property type and location when determining the feasibility and design of a DADU.


Market & Competition

When considering adding a DADU to a property, it is important to research the local market and competition. This can help determine the potential demand for rental units and the feasibility of adding a DADU to a property.

Overall, DADUs can be a valuable addition to a property, providing an additional source of income and increased property value. However, they also come with potential drawbacks, such as zoning and permitting requirements, construction costs, and potential for increased property taxes. It is important to carefully evaluate the potential ROI, property type, market and competition, and any potential challenges or opportunities associated with adding a DADU to a property. With proper research and due diligence, a DADU can be a successful investment strategy.

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