Knowing when to buy/wait?

Question

Account Closed · Answer

as a general rule , timing markets is really hard so never a sound strategy in itself. That being said , having an idea of where you are in the RE cycle can prove to be very valuable . I don't know the specifics of Alaska but you are already identifying some risk in the local market. I would def make sure you are in tune with all current employees who are firing / hiring now and anticipated. Oil Has ups and downs  so if you can make it so that is only a component as opposed to the whole , it could serve you well. Maybe see if one of the local economies had more diversification say a larger health system ,school system, food  processing etc that can make an investment have a more managed risk level

Andrey Y. · Answer

It sounds like appreciation has been at a snail's pace (approximating about inflation) since about '08, both in Anchorage and Fairbanks. That being said, I think investing there would be a cash flow play strictly.

Due to special considerations in Alaska, such as landlord paying for fuel, throw in snow removal, then the usuals like repairs, CapEx, tax, PITI, and perhaps boilers and roofs taking more wear and tear.. it seems to me like a Fourplex would be the only way to offset these additional costs. I don't see how you would net positive cash flow on a SFH or Duplex.

Will likely be moving to Fairbanks this summer, and I am struggling with which way to go. I would hate to rent for a few years, but if the numbers don't make sense, I'll have to. Or lend money. Let me know what you decide and lets link up when I arrive there!