Investing in Anchorage AK during the winter
Hi Alaskan Real Estate Gurus!
First time post...
I'm looking to buy an investment property in Anchorage before the year ends. I have spent some time in AK (never in winter though). enjoy fishing/hunting, and my Uncle lives in Anchorage. My wife and I really like it up there and are looking to invest in rental properties (Uncle has 3 rentals), potentially buying 3 or 4 solely for ROI over the next 2 years. I am in contact with a very experienced local agent in Anchorage. I'm hoping to pay $200k or less on a "newish" 3bed/2bath townhome/condo on the east side. I want to make ~$250/month in positive cash flow when it's occupied (this includes all expenses including a property manager). My agent didn't tell me this was impossible but I also didn't get a warm and fuzzies when I said these are the numbers I'm looking for. Looking at all the expenses (HOA, taxes, etc) and the price of rentals, it seems doable to me.
There are tax implications for us due to our income, my napkin calculations showed that closing a deal in 2019 would save us about $3000 vs waiting until 2020. Unfortunately, we won't have a down payment ready until November. My agent has said it is certainly possible to close by end of December if I have loan approval by mid-November. So, that is our current plan. I had a few questions about this, mostly looking to get second opinions outside of my Uncle and the agent I'm working with.
- Everything else being equal, is it worth the $3k tax savings to buy in nov/dec 2019 vs wait until sometime 2020 (we can be flexible when we buy in 2020)?
-Are sellers looking to "unload" properties this time of year (i.e. before winter really really sets in)? Our agent informed me that properties sell for 98% of list on average and I shouldn't expect to throw offers at 90% of list for places that have been on the market for a while (which was my perhaps overly optimistic plan) in November.
- Is it hard to find renters in the winter?
- Should I consider foreclosures off the table during this timeframe?
I really appreciate any responses you can provide. I have no experience as a landlord or a real estate investor but I'm excited to start this chapter in our lives.
Warm Regards,
Ryan Bray