In an episode of the DealMachine Real Estate Investing Podcast, Edmond Bondoc shares exactly how he turned a stalled Seattle fixer into a high-equity, cash-flowing ADU project. Want to hear the full story in his own words? Watch the full episode below:
Edmond Bondoc used ADU lot splits in Seattle to turn a single-family lot into three legal homes and generate over $700,000 in equity. He combined a renovation loan, condoization, and strategic refinancing to unlock cash flow and long-term rental potential. Here's how it worked.
Edmond Bondoc began building wealth with ADUs and long-term rentals after growing up around investment properties. In 2015, while still in college, he earned his real estate license and started flipping homes.
By 2017, he was house hacking and buying rental properties in Kansas City, Missouri using the BRRRR method. In 2021, he transitioned full-time into real estate, focusing on off-market deals and working as an investor agent.
Bondoc found the opportunity by using Driving for Dollars and direct mail marketing. The seller had started renovations but stalled due to construction issues. After months of negotiation, Bondoc purchased the home for $700,000.
A feasibility clause ensured he could build two ADUs before closing. This step was critical for minimizing risk and confirming the development potential.
The previous owner hired unlicensed or inexperienced contractors. Work repeatedly failed city inspections, especially plumbing and electrical. After spending $150,000–$200,000 without passing key inspections, the owner gave up. Bondoc stepped in, corrected the issues, and brought the home up to code to support both a safe living environment and a future build.
Bondoc used a combination of creative financing tools to make the deal work:
This strategy lowered upfront costs and maximized leverage, allowing the build to begin with minimal cash out-of-pocket.
Condoization is a legal process that divides a single parcel into multiple independently financed units. For this project:
This made it possible to begin construction without additional capital.
Bondoc’s ADU investment strategy prioritized quality, functionality, and speed:
Choosing a premium builder increased upfront costs but ensured code compliance, better timelines, and fewer inspection issues.
This small-scale multifamily development produced strong projected ROI:
This build-to-hold model supports long-term wealth through rental income and rising property values.
Not all properties are ideal for backyard unit development. Look for:
These indicators can guide where to focus your next Driving for Dollars campaign.
Using smart financing tools like HomeStyle and construction loans designed for ADUs can reduce cash needed to break ground. Key benefits:
These financing tools allow small investors to complete high-value builds with limited liquid capital.
Both HomeStyle and 203(k) loans are ideal for building wealth through ADUs. Here’s how they compare:
Neither loan requires the home to be fully livable at purchase, making them flexible for fixer projects.
Condoization typically takes 2–3 months in Seattle. The timeline depends on:
Seattle’s recent zoning changes have made this process faster and more predictable.
The success of any ADU development depends on contractor quality. Bondoc chose a seasoned ADU builder who:
Cutting corners on construction can delay approvals and crush returns. Paying for proven quality adds long-term value.
To preserve low-interest loans from past purchases, Bondoc uses HELOCs (Home Equity Lines of Credit) on existing properties. This allows him to:
It’s a scalable, investor-friendly approach to real estate financing.
With construction approved and financing secured, Bondoc is already preparing for his next deal. His playbook:
He’s building a long-term rental portfolio with scalable, repeatable small-scale multifamily strategies.
What is an ADU and how does it build wealth?
An Accessory Dwelling Unit (ADU) is a secondary home on a single-family lot. It creates rental income and increases overall property value, helping small investors build wealth.
Can every single-family lot in Washington be split in 2025?
Yes. As of summer 2025, Washington allows lot splits on all single-family parcels, enabling more units per property and more development flexibility.
What is condoization in real estate investing?
Condoization legally divides a single property into multiple units that can be financed, sold, or rented independently. It’s a powerful tool for unlocking value on one parcel.
What loan options can fund ADU construction?
HomeStyle renovation loans (5% down) and FHA 203(k) loans (3.5% down) fund both purchase and renovation. Some lenders also offer ADU construction loans that include soft costs.
How much does it cost to build an ADU in Seattle?
Typical ADU build costs in Seattle range from $350 to $450 per square foot, depending on design, builder, and finish quality. Always get bids from local professionals.
This real-world case study, grounded in a full podcast interview and hands-on experience, delivers a repeatable strategy for building wealth through Washington ADU lot splits. It blends financing innovation, legal structuring, and street-level investing, all optimized for today's market, and tomorrow's AI-driven discovery tools.