Feasibility First: How Smart Investors Add $300K of Value Before Construction Starts

If you’re waiting to build equity after construction, you’re already late. Every new investor wants to get to the “fun part” - designing, building, collecting rent. But here’s the truth no one tells you: The money isn’t made during construction. It’s made during feasibility.

The best DADU investors in Seattle aren’t chasing quotes or waiting for appraisals. They’re quietly adding $300K+ in value before the first shovel ever hits the dirt - simply by understanding what’s possible on a lot.

If you don’t master feasibility, you’re not developing. You’re guessing.

Feasibility is the process of confirming what you can legally build, how much it will cost, and what it will be worth - before you commit to a project.

It’s the due diligence phase that separates builders from speculators.

For DADU investors, that means:

  • Checking zoning and lot coverage (Can you add a second unit? How big?)

  • Understanding setbacks and height limits

  • Verifying utility locations (where water, sewer, and power actually connect)

  • Identifying trees, easements, and slopes that limit your footprint

  • Getting preliminary design feedback from your architect or city

In short: Feasibility answers one question - Is this lot the right move, or a money pit in disguise?

A lot of investors fall for the same trap: They buy first, design later.

That’s how you end up discovering mid-project that your sewer is on the wrong side of the lot or that your buildable area is half of what you planned.

Those surprises don’t just delay your project - they crush your margins. But when you do feasibility right, you create forced equity long before framing begins.

Example:
You buy a property for $900K. Through feasibility, you discover:

  • Zoning allows a full-size DADU at 1,000 sq. ft.

  • Alley access means cheaper utility runs and easier parking approval.

  • You can condo-convert the main home and DADU separately.

Now your finished ARV jumps from $1.6M (rental duplex) to $1.9M+ (two sellable units) - without changing the build cost. That’s $300K of value created through information, not construction.

Start with Seattle’s GIS zoning map and SDCI lookup tools.
Look for:

  • Zoning type (SF-5000, RSL, LR1)

  • Setbacks, lot coverage, and allowable height

  • Tree protection and environmental overlays

Pro Tip: Corner and alley-access lots are gold. They offer flexible design and cheaper utility runs.

Order a topographic survey and request utility as-builts from Seattle Public Utilities.

This tells you exactly:

  • Where your sewer and water lines run

  • Elevations for drainage feasibility

  • Existing power pole locations

Pro Tip: Confirm your utility path early. A 40-foot trench through concrete can destroy your ROI.

Bring in your architect for a schematic layout. You’re not designing finishes yet - you’re testing what fits.

Then, file a Pre-Application with SDCI to get city feedback before full submittal.

This step can uncover red flags like:

  • Tree protection requirements

  • Parking restrictions

  • Drainage review triggers

Pro Tip: A strong architect saves you months in corrections. Don’t cheap out on experience.

Now translate design into dollars. You’re looking at:

  • Soft costs: Surveys, permits, design fees

  • Hard costs: Construction estimates

  • Exit options: Refinance, rent, condo conversion, or sale

Build two models - a worst-case hold and best-case exit. If the deal only works under perfect conditions, it’s not a deal.

Pro Tip: Always include a 10–15% contingency for time and cost overruns.

Feasibility isn’t complete until you know how you’ll get out.

Ask:

  • Am I building to rent long-term or sell one unit?

  • Does the design support both exits?

  • What’s the refi potential after completion?

Your exit determines your financing structure, design layout, and utility configuration.

Pro Tip: Always plan for resale - even if your goal is to hold. It future-proofs your asset.

An investor in Greenwood was considering a $950K single-family lot. Initial comps showed limited rental upside - not worth it.

But feasibility revealed:

  • Alley access

  • 1,000 sq. ft. DADU buildable area

  • Ability to short-plat into two lots post-build

After running numbers, the investor realized they could:

  • Build the DADU for $400K

  • Sell it as a standalone condo for $750K
    Keep the main home as a $4,000/mo rental

Result: $350K equity gain before breaking ground. That’s the compounding power of information.

Feasibility isn’t paperwork - it’s your first build.

When you do it right:

  • You find hidden potential others miss.

  • You negotiate stronger.

  • You attract better partners and financing.

  • You move faster through design and permitting.

In a market like Seattle, where every inch of land matters, the investor who masters feasibility doesn’t just survive - they scale.

Smart investors don’t swing hammers blindly. They build on paper first. Feasibility is your cheat code - the quiet, boring process that produces extraordinary returns.

You can’t control the market. But you can control your data, your design, and your decisions.

And that’s how you add $300K of value before the first yard of concrete ever gets poured.

Stephen Husted