Stop Chasing Deals - Start Building Them

Everyone’s fighting over the same listings. Same tired fixers. Same overpriced flips. Same low returns. But here’s the truth no one’s talking about: the best deals aren’t listed, they’re designed.

In Seattle, the smartest investors aren’t hunting for discounts, they’re creating equity in their own backyards. Detached Accessory Dwelling Units or DADUs - are flipping the script on how wealth is built in this city.

Over the last few years, Seattle’s zoning reforms quietly opened the door for a new kind of real estate play: small-scale infill development.

You can now build up to three units on most residential lots, which may include one main house and either one attached ADU and one detached ADU, or two or more detached ADUs/DADUs, depending on your property’s allowance.

Investors who used to chase 6% cash-on-cash returns on turnkey rentals are now stacking six-figure equity by building backyard homes.

They’re not competing with the market, they are the market.

Here’s the math most investors overlook:

  • A dated Seattle home might cost $800K. Add a DADU for $400K, and your new combined property appraises for $1.5M+.

  • That’s $300K–$400K in forced equity — before you’ve even rented it.

  • Then, each unit rents separately, bringing in $6,000–$8,000/month total instead of one single-family rent check.

The kicker? You can condo-ize the units and sell them off separately. One backyard project turns into a multi-unit portfolio or a clean exit with multiple sales. That’s not flipping. That’s manufacturing wealth.

Seattle isn’t the next Austin or Phoenix. It’s built differently,  literally. With land constrained by water, tech demand pushing prices, and strict zoning in most neighborhoods, adding density where you already own is the ultimate leverage play.

The city is now rewarding investors who think like developers. Permits for DADUs are faster, fees are reduced and financing options have caught up (DSCR, HELOC, and construction loans built for small-scale projects).

If you’re waiting for the market to “correct,” you’ll miss what’s already happening: Seattle’s next wave of wealth isn’t in flipping - it’s in infill.

Want to get in the DADU game? Here’s where to start:

Focus on properties zoned SF-5000 or LR1 with alley access, flat terrain, and utility capacity.

Don’t just look at rental comps - project your after-build value and construction timeline.

You’ll need an architect (for feasibility and design), a contractor familiar with DADUs, and a real estate attorney who understands condo conversions.

DADUs aren’t quick flips. They’re scalable wealth plays. Each project can unlock 30–40% equity growth and add layers to your portfolio, even in a flat market.

Seattle’s DADU movement isn’t a fad. It’s the evolution of real estate investing. Investors who used to dream of owning 10 rentals are now creating them - one backyard at a time.

You can keep waiting for “the perfect deal.”  Or you can build one yourself.

Stephen Husted