We were going to flip this house for a quick $140K profit... until we realized we could triple the value by building *in the backyard*.
This property went from a base hit to a $2.4M home run by adding a DADU, converting the original home into an ADU, and building an entirely new single-family home on the same lot. More units = more value… but only if the numbers make sense.
In this video, I break down exactly how we: - Took a $775K purchase and turned it into a $2.4M project - Worked with architects to design the DADU & ADU layout - Evaluated FAR (Floor Area Ratio) and zoning limitations - Ran comps and built a real estate development pro forma - Decided whether it was smarter to flip or build new - Calculated cost per square foot vs. resale value - Avoided overbuilding and kept each unit sellable
This is one of the best backyard development plays I’ve done—watch the full breakdown.
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🎵 Music from Epidemic Sound 🎥 Footage provided by MotionArray
0:00 - Intro: Why We Didn’t Just Flip This House 0:35 - The Original Plan: $140K Flip 1:15 - Finding Density: FAR, Lot Size & Zoning 2:05 - How We Added a DADU, ADU & New Build 3:10 - Talking to the Architect + Survey Process 4:00 - Running Comps & Budget Breakdown 5:05 - Build Costs vs Sell Price (per sq ft) 6:00 - Road Access & Parking Requirements 6:45 - How Overbuilding Can Kill Your Profit 7:40 - Timeline: 9 Months vs 2 Years 8:20 - The New Pro Forma: $2.4M Total Value 9:05 - What I’d Do Differently Next Time 9:45 - Final Thoughts: When to Flip vs Build 10:10 - Subscribe for More Investing Tips
