SkyDADU: Accessory Dwelling Unit Builder and Equity Partner
Most homeowners who consider building a detached accessory dwelling unit (DADU) assume the process works like any other home construction project — hire an architect, get plans drawn up, then figure out financing. In reality, a DADU is a secondary dwelling on the same lot as a single-family residence, and that distinction makes the process considerably more complex. Financing, permitting, construction, taxes, and long-term property management all carry layers that most homeowners don't anticipate until they're already deep into the process.
SkyDADU was founded to address exactly this challenge. Rather than leaving homeowners to piece together financing, design, and construction on their own, SkyDADU brings those elements together under one structured process. Their service area currently covers King, Snohomish, and Pierce counties in Washington State.
Why Traditional Construction Financing Falls Short for DADUs
Stand-alone construction loans for DADUs are difficult to obtain. Most homeowners already carry a mortgage on their primary residence, which creates several obstacles with conventional lenders:
- Deed of Trust position: Lenders typically require first position on the deed of trust to protect themselves in a foreclosure scenario. When a primary mortgage already exists, this becomes complicated.
- Property valuation risk: Because a DADU can potentially be sold separately from the main home, lenders find it harder to assess the overall loan-to-value (LTV) ratio accurately.
- Loan type restrictions: Certain mortgage products, including some government-backed loans, have limitations that prevent financing properties with additional dwelling units.
- Rate exposure: Even if a primary mortgage lender agrees to underwrite a DADU loan, they may require the homeowner to refinance the existing mortgage at current rates before issuing a construction loan.
These barriers leave many property owners without a clear path forward — which is where SkyDADU's equity-based model comes in.
SkyDADU operates as an equity partner, not a lender. Instead of debt financing, they offer equity financing structured around two scenarios:
- Up to 100% funding ($0 down) for properties with an existing detached garage that has unobstructed access from an alley or driveway. Once the DADU is built, it is sold and the net proceeds are split 50/50 between the property owner and SkyDADU.
- Up to 50% co-ownership for owners who intend to keep the DADU as a rental income property. SkyDADU partially owns the DADU for up to five years, with rental income shared on a 50/50 basis.
SkyDADU also handles the legal infrastructure required for this structure, including condominiumization of the DADU as a separate unit from the main home, LLC formation for liability protection, and HOA establishment to manage the relationship between the primary residence and the DADU.
It's worth noting: if a property owner has already secured their own funding to build a DADU, SkyDADU directs them to Sockeye Homes to begin the design-build process directly.
Fixed-Price DADU Packages and Construction Approach
SkyDADU offers fixed-price DADU packages, which is a practical necessity given the equity-sharing structure. Because the profit split between the property owner and SkyDADU is determined at the outset, accurate and final cost figures are essential. Without a fixed cost, there is no reliable basis for dividing rental income or sale proceeds — particularly when a partial reconveyance from a first-position lender is involved.
Each package has pre-selected components chosen by the Sockeye Homes team, with an emphasis on performance, durability, and long-term value. SkyDADU was founded by builder Tod Sakai, and each DADU is constructed as an onsite stick-built custom home — the same construction method used in Sockeye Homes' projects.
New state law in Washington has expanded the opportunity for DADUs by allowing them to be built on existing lots — including areas previously considered encroachments — without requiring a subdivision. The law also preserves zero-lot-line conditions along alleys, which means a teardown and rebuild of an existing garage structure does not trigger older setback rules. This effectively gives property owners new buildable land without purchasing additional property or splitting their lot.
For property owners, a completed DADU can serve multiple purposes: it can be rented for passive income, sold as a separate condominium unit, or the owner can move into the DADU and sell the main house — potentially utilizing the $500,000 capital gains exclusion available to married couples who have lived in the home for at least two of the past five years.
SkyDADU's current service area includes King, Snohomish, and Pierce counties in Washington State. Properties located outside the Urban Growth Area (UGA) that have already secured independent funding are referred to Sockeye Homes for the design-build process.