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Top Five Reasons to Build a DADU on your Property

Top Five Reasons to Build a DADU on your Property

My name is Laura Anderson and I’m a local realtor, born and raised in Tacoma, Washington. I first learned about DADU’s (detached accessory dwelling unit) a few years ago and was immediately interested in what this could mean for us. My partner and I had just purchased a small 700 square foot house in Central Tacoma with a large detached garage. We then turned the detached garage into a DADU and almost immediately, the income from the DADU being rented out was covering our mortgage. I’m going to break down our Top Five Reasons to build a DADU on your property.

1. Future passive income:

Our first reason, and probably the most important one, was to have a rental property. Tacoma’s rental market is hot and we definitely love that having a DADU pays part of our mortgage (depending on what your payment is). If you rent it out, the income generated from your DADU can be quite substantial!

A common layout in Tacoma DADU kitchens

2. Adding housing to the Tacoma real estate market:

If you’ve tried to find a rental, you most likely noticed that Tacoma is bursting at the seams with people needing a place to live. The city is doing its part by encouraging local Tacomans to build DADU’s on their property, therefore creating more housing for the city’s people is a great thing. We love that companies like Tacoma DADU are making this process easier!

3. It’s more affordable than buying a duplex in Tacoma:

If your main goal is to create wealth through rental properties, adding a DADU onto your property, while not cheap, is more affordable than buying an additional house, or duplex. The difficulty with a DADU is that you do need to pay for the build up front in most cases, as opposed to financing the whole thing, but if you can swing it- the investment will pay out in dividends in the long term.

A common bathroom in Tacoma DADU’s builds, as fiberglass surrounds are great for low maintenance in rental properties.

4. Build a DADU, and move in:

If you are comfortable with smaller living, building a DADU on your property and then moving into it will allow you to rent out the larger main house. Depending on your build and other factors, the rent from the main property may be even greater and could get you closer to covering your mortgage! The other perk is you can create your DADU specifically to your wants and needs, making it thoughtfully designed and perfect for you.

This particular Garage Conversion DADU had extra space in the alley, giving enough of road parking for 3 cars. Two for the existing home and one for the DADU.

5. Increasing your home value:

Potentially the biggest benefit of building a detached accessory dwelling unit on your property is that it will add to your home’s value. The money that you spend on the build does not disappear- it goes into the equity of your house. This means that if you choose to sell your house with the DADU, it will bring in more money to your pocket. Additionally, if you want to keep it, you have added equity so if you wish to take out a HELOC (home equity line of credit) or do a cash out refinance you now are able to!

Laura is a friend of mine and having done a DADU I thought it pertinent to have her experience in a blog.  She is an awesome agent and knows her stuff.  Her contact info is below if you’d want to reach out.  See more and learn more about DADU’s on our Instagram: @tacomadadu
 4701 South 19th Street, Suite 200 / Tacoma, WA 98405

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