Real Estate Agent · Eagle River, AK · Member since 2022 · 54 posts · 39 votes
Look at the MLS data on average residential sales prices in Girdwood , a community just south of Anchorage- it has increased 93% in five years, from $420,932 to $813,308. Prices haven't dropped here as they have in many other parts of the country.
South central Alaska is a good place for property appreciation - largely because the state's transportation and economy and a huge military community are locked in between mountains and ocean. Most investors focus on cash flow when analyzing properties, but a lot of money can also be made as properties appreciate. It is important to work with a local investment team that is knowledgable about how appreciation varies not just from one community to the next, but from one neighborhood to the next. Rent increases tend to mirror increases in home values.
The average rates of residential appreciation on the initial investment over five years: 21% in Anchorage (which will be higher in the better neighborhoods - appreciation in Mt. View is flatter). 20% in Chugiak. 25% in Eagle River. Above and beyond the financial benefits of cash flow, tax write offs, and building equity...investing in multifamily in Alaska is pretty awesome. For some folks in the game with some equity already in a property - might be time for a 1031! Great to work with the guys on our team at Vested Alaska- @Jamie Rose@Tyler Cobb
Girdwood has been a bomber market over the last 10 years and I regret the day that I looked at my agent out of the corner of my eye when he suggested I look there as a first-time homeowner; nevertheless, that was not the market for me then. I am a long-term owner/investor in Eagle River and I have a couple of properties that do provide cash flow (not without keeping arguably too much capital in the homes). Long-term south central AK looks solid. With my current team, it is hard to make the numbers work without the proper lead. The market does not swing drastically, but I have been unable to find enough cash flow in multi-family (since 2018 without the foresight of the 2020 rent growth and without being an owner-occupant performing much of the work).
I probably should have led with this, but my buy-box is SFR C+ to A-. I am Mil. and the military demographic provides solid occupancy and sales opportunities. The military population is going to grow significantly over the next year on JBER as well, and contribute to the inventory issues (not necessarily bad for investors).
Thank you for contributing on the Alaska market, it may not be "the hotness," but the numbers continue to work on many deals.
Girdwood has been a bomber market over the last 10 years and I regret the day that I looked at my agent out of the corner of my eye when he suggested I look there as a first-time homeowner; nevertheless, that was not the market for me then. I am a long-term owner/investor in Eagle River and I have a couple of properties that do provide cash flow (not without keeping arguably too much capital in the homes). Long-term south central AK looks solid. With my current team, it is hard to make the numbers work without the proper lead. The market does not swing drastically, but I have been unable to find enough cash flow in multi-family (since 2018 without the foresight of the 2020 rent growth and without being an owner-occupant performing much of the work).
I probably should have led with this, but my buy-box is SFR C+ to A-. I am Mil. and the military demographic provides solid occupancy and sales opportunities. The military population is going to grow significantly over the next year on JBER as well, and contribute to the inventory issues (not necessarily bad for investors).
Thank you for contributing on the Alaska market, it may not be "the hotness," but the numbers continue to work on many deals.
Rental Property Investor · Anchorage, AK and Utah · Member since 2020 · 50 posts · 30 votes
3y
This is a great post! I've had my eye on Girdwood since arriving in Alaska for the Army as a great place for an investment property. It seems like seller finance/creative financing would be key down there since listings on the MLS in Girdwood are so rare.
Girdwood is definitely a need-to-know market. I have noticed that by the time any deal makes it to market, the numbers dont make sense (the property has generally been introduced to the local market before it would make it to the MLS). Marketing to homeowners would likely get you a couple deals from of the longer owners (which may mean some deferred maintenance in an incredibly wet and heavy snow area). There is a lot of money building that place up currently and preventing other development opportunities on the Anchorage side. Not trying to be a Debby-Downer, but at this stage in my investment journey, I would not be up to the task without a tweak to my current network.
Like most places that have experienced a large boom in the last couple of years, I would look at opportunities that may be present in the near vicinity.