Real Estate Rookie

The Beginner’s Guide to ADU & DADU Investing (2025)

45 snips
Jul 23, 2025
In this discussion, Leka Devatha, an investor and author known for her expertise in ADUs and DADUs, shares valuable insights on maximizing rental property income. She explains how these units can transform ordinary lots into profitable assets. Listeners will learn about navigating local regulations, financing options, and how to avoid common mistakes. Leka simplifies the process for rookie investors, emphasizing that with the right approach, anyone can tap into the lucrative world of accessory dwelling units.
Ask episode
AI Snips
Chapters
Books
Transcript
Episode notes
INSIGHT

Variety of ADU/DADU Types

  • ADUs and DADUs include many forms like backyard cottages, attached units, attic renovations, and basement conversions.
  • This variety allows transforming existing properties to generate extra income streams.
ADVICE

Choose Pro-Housing Cities

  • Target cities with pro-housing legislation like Seattle, Portland, LA, and Austin for ADU/DADU investments.
  • Buy distressed homes with large lots to build DADUs, effectively getting land almost free and adding significant value.
ADVICE

Finance DADUs with Hard Money

  • Use hard money lenders that finance acquisition, rehab, and DADU construction with about 15-20% down.
  • Interest only accrues on funds drawn during construction, minimizing carrying costs during permitting and design.
Get the Snipd Podcast app to discover more snips from this episode
Get the app