Your Ultimate Guide: How to Make $1 Million with Real Estate in Spokane, WA

Today, I'm thrilled to share some exciting news about the changes happening in the Spokane housing market and how you can capitalize on them to make a significant amount of money through ADUs (Accessory Dwelling Units).

The New ADU Laws in Washington State

Recently, there have been over a hundred bills passed in Washington's legislature regarding housing, and one of them is focused on ADUs. The new law aims to make ADUs more accessible to homeowners, allowing them to build additional housing units on their properties, thereby creating more rental options and increasing housing density.

Previously, Spokane allowed only one ADU per property, and the homeowner had to live in one of the two units. However, last year, the city changed its regulations, allowing homeowners to rent out both units without living in either. Now, the state of Washington is taking it a step further by making this a law statewide.

Benefits of ADUs and Their Potential

ADUs have often been rented below market value, and around 10 percent are rented for free to family members or friends in need. This type of housing can provide a supportive environment for those in life transitions or need. Moreover, the recent changes in legislation open up new investment opportunities and ways to build wealth through ADUs.

Maximizing Profits with ADUs

Here's how you can take advantage of the new ADU laws to make substantial profits in real estate:

1. Location Matters: Focus on buying properties within the urban growth area in Spokane County. Look for homes with slightly larger lots that can comfortably accommodate two ADUs.

2. Condoization: One of the game-changers in the new law is the ability to create separate condo associations for each ADU. This means you can sell each property individually, maximizing their market value and potential profit.

3. Long-Term Investment: Since the new regulations won't take full effect until around 2027, consider renting out the property with the plan to develop ADUs in the next five years. This will allow you to leverage the property's equity to build the ADUs and unlock their true value later.

4. Seize Opportunities: Take advantage of this significant shift in the housing market to find good deals on properties with potential for ADU development. Be proactive in identifying opportunities in the urban growth area.

With the recent changes in ADU laws in Spokane and Washington as a whole, investing in real estate and building ADUs has become a highly promising venture. These changes not only allow for more flexibility in renting out ADUs but also present a unique opportunity to create separate condo associations, increasing the potential profits significantly. If you're looking to build wealth through real estate, ADUs in the urban growth area should be at the top of your investment list.