Alaska Investors?

57 Replies

There's a lot of questions you should start asking yourself. 

What type of financing will you be using? If FHA, go fourplex because your ROI on upfront investment will be amazing (unless you're in a great place to go conventional). Not to mention you can property ladder down into triplex/duplex/SFH at a later date.

What is your price point? Wasilla/Palmer are substantially cheaper, getting your more building and land, but the rents reflect that as they are not as high in Wasilla/Palmer (we call it the valley out there). 

What is your taste in property? If you go FHA you have to owner occupy. If you are getting a loan out (whether FHA Or conventional) what can you afford? The multi-family market is competitive out here and prices are high. If you don't qualify for what you desire in taste, the valley may be more suitable (please note when investing you should go off of numbers always, not necessarily taste).

On that same topic, if you are going FHA or VA, and if you can, try not to out your significant other on the loan as that allows them to use their FHA/VA loan if they are financeable.

How long will you have that property? If you're buying and holding (which I recommend) either area would be a safe bet. They say you can never count on appreciation, but the margin for it in the future seems to be better out in the valley. 

@James Cash do you ever work in the Mountain View area?  I have a rental across the Glen off Turpin (Whisperwood Condos) that does well.  I personally wouldn't want to live in MV but the price point is a lot better if the area isn't too bad from a PM perspective.

Originally posted by @Kevin Elwood :

@James Cash do you ever work in the Mountain View area?  I have a rental across the Glen off Turpin (Whisperwood Condos) that does well.  I personally wouldn't want to live in MV but the price point is a lot better if the area isn't too bad from a PM perspective.

 Yeah... If your strategy is buy and hold, and can screen tenants the right way, then it can be ideal. The exit strategy from there than be a lot harder due to location. So it just depends on your strategy and any need to exit that property / liquidate your investments. 

@Roy Schauer that was the draw to the area for us. I bought it brand new when I was stationed with the 4/25 knowing it would be a rental down the road. It was nice getting 0% down VA loan and having the BAH pay the mortgage while I was in and a tenant pay it plus some while I am out!

@James Cash that is what I figured.  As a distant owner I think I would rather steer clear of that area.

I get the feeling Wasilla or even Big Lake area would be the next growth opportunity, especially if the Knik Arm Bridge goes in.  Better yet, be the first to start developing Point MacKenzie!

@Kevin Elwood I agree with that. Especially if you're hiring a management company, you never know what will happen to your property.

I also hope the bridge goes in. I have a fourplex out in Wasilla I'd like to see get some overnight appreciation.

Drew NA

My wife and I are currently house hacking. She is also from Texas (San Antonio) and loves the outdoors up here. Prices in Eagle River are about the same (though slightly lower) than Anchorage, and it has a different neighborhood feel (think middle aged (mostly white) women hanging out at the coffee shop wearing their REI jackets). Most neighborhoods in town are pretty diverse in socio-economics and housing (think trailers on lots next to duplexes and single family homes). I personally would never do the commute because I don't need a lot of land or a big house for cheap (relatively). The highway travel time can be highly variable due to rain and snow events or ice on the road (we use sand, not salt on the roads here). So, its a stressful commute for a lot of people. If you're looking to house hack in town (and find a place you would like to live), look for properties that meet or exceed the 1% gross rent to sales price criteria.

How much of an impact of the market (price of purchase and rental rates) do you think military downsizing will have on the Anchorage/Valley area?

I've started investing in Anchorage from last year, and bought condo & 4-plex.  Properties that meet 1% role (gross monthly rent vs. sales price) is rare in Anchorage, unless you really want deal with class D/E renters.  I am looking at 0.8% above.   

BTW, I am really interested to meet some REI friends in Anchorage. I searched and found several said REI/Landlord clubs in Anchorage. when I call those phone numbers, none of these actually in the service. :(.

Originally posted by @Hui Li :

I've started investing in Anchorage from last year, and bought condo & 4-plex.  Properties that meet 1% role (gross monthly rent vs. sales price) is rare in Anchorage, unless you really want deal with class D/E renters.  I am looking at 0.8% above.   

BTW, I am really interested to meet some REI friends in Anchorage. I searched and found several said REI/Landlord clubs in Anchorage. when I call those phone numbers, none of these actually in the service. :(.

 I have been in the wasilla area for the past week and leaving to go back to soldotna today, Its a shame we cant get together now but maybe in a few months when I get back

Hey Anchorage! I just bought my first 4-plex in East Anchorage (Boniface/Taku) last March and have been buried with all sorts of learning experiences since. I feel like I'm able to surface again and would love to join in on a meet up in December if anybody is organizing. 

I just signed up for the REX meetings but I always seem to be out of town when they're going on as I work in Fairbanks half the month.

I look forward to sharing stories and strategies!

John

Congrats on the 4-plex John!  It was a roller coaster for me too when I bought my first 4-plex.  Keep up the hard work and BP is a great place to help you determine your next step!

Also, speaking of the REX club, @Kevin Cross just posted a very informative video for landlords like yourself that you should take a look at for your next purchase.  Two of my properties I have bought so far I did not complete all of these tasks and have gotten lucky that nothing happened that would have bitten me in the arse.  

Hello, I’m Jason from Palmer!! Just getting started in the investment game. I bought a 4plex In Wasilla in 2012. I recently sold it, 1031d the money and bought 3 4plexs in Palmer. Now I own 12 units!!! I want to do more. I’m looking to find a team to kick some more investments into gear. My daytime job is a Journeyman Plumber. I’d like to figure out some residential flips or work on getting some commercial loans going.

Jason, I live in the Anchorage and am looking to be part of a team and get myself into REI. Unfortunately my financial situation doesn’t allow me to start on my own but I am on track to be looking to purchase 12 months from now. In the mean time I have a lot to offer a flip and sell or rent team. I worked as a painter for 2 years prior to enlisting and since I got out I have been working in a high end remodel company in town.

Would love to meet up and discuss ideas and pick your brain!

I've settled in Soldotna and looking for multifamily properties to invest in. I have a lot to learn about multifamily properties if anyone is willing to talk shop with me

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