Hi everyone, I am new to Bigger Pockets, but my wife and I have dabbled in real estate a bit over the years. When we lived in Cheyenne, Wyoming we bought a duplex as our first investment property and it turned out to be a good experience. We sold it when we moved to Alaska 11 years ago, settled into a new job, sat on the sidelines while the economy slumped due to low oil prices, and recently purchased a SFH at a reasonably good price, rehab'ed, and rented it to a great family. So far, so good.
Our goals are to use real estate to diversify our retirement portfolio since about 90% of our investments are in stocks and bonds through employer sponsored programs. Not yet sure where our foray into real estate will lead us, but we're looking at all the options. It should be an interesting journey!
Welcome! My wife and I have been in the anchorage market for a few years now. If you need to talk to anyone, let me know, I can point you into tight direction, we have found a number of great professionals that makes the process so much easier.
Welcome @Ron Healy to the site, many great people and opportunities that flow through this site. Best of luck!
Welcome @Ron Healy !! Always good to see more investors in the Anchorage/Alaska market!
I graduated from west anch ak in 83
I love that state
there are ops everywhere- is eagle river and homer still moving?
i always figured that the area would always be a great investment -out in diamond or rentals up on government hill
good fortune to you
Eagle river is pretty hot right now, but I think it's on the overpriced side vs houses, you are less likely to see renters wanting to do the commute for a similar space in anchorage and pay more in rent. Hillside is starting to soften due to the oil prices so low, Alaskas economy in general is slowing, but the upside is that if you are poised to strike, it will be a great opportunity in a short time to buy low.
Thanks for the welcoming notes and offers everyone. It's good to know we're not alone in this. I'm hardly an experienced real estate investor, but I agree that it's probably best to be watching and waiting in AK for now as we will probably see a correction in residential and commercial prices. However, it seems to me that rentals are still very strong. We recently had no trouble renting a 4/2 typical Anchorage spit-level home. I wonder if the rental market is relatively protected from an economic downturn. Any thoughts?
The state lost 7k jobs in 2016 and it is expected to lose another 7k jobs this year. You might've just gotten lucky but a nice rental in a good area is still in demand right now.
I was raised in AK graduated from Dimond and UAA, my wife are starting to look at properties, I have a few more years down here in the craziness! Have a couple dental practices need to get sold before we can move home but want to start investing now
@Ronald Laurion sometimes it's better to be lucky than good! Although obviously we can't count on it. We happened to find a split level home on a corner lot and although it needed some TLC, it had a new roof and a new furnace. The owners were a young couple who just wanted out of their mortgage and we were able to come to terms that made everyone happy. However, I agree with you that the AK market is probably in for a rough ride over the next year or so.
@Robert English it's good to 'meet' you. Good luck in your search! We've been here for 11 years and Lord willing, we'll never leave. We just love this place.
Thank you for the kind thoughts... true The Lord willing we will be home soon! Maybe we can if you'd like connect? Will be coming up to see family and get our AK "fix"
@Robert English Certainly! Just PM me when you will be here and we can figure out a time and place to get together.
just googled some info on rental market up for 2016... you might find useful. Check out:
@Robert English Wow, very interesting. Thanks! I'm going to print it off and have a close look. I suppose the big question is whether we've seen the worst of the economic slowdown or not.
it probably will get a bit worse then start doing better... with Trump in the Whit house the shackles will probably be taken off exploration... possibly even a rail link up to ship coal... maybe!
Have noticed that there has been a number of multifamily properties dropping asking price by a significant amount... anyone have a reason for this or an opinion?
Yes the market is softening. In past years, anchorage had a 2-3% empty rate in rentals, currently they are sitting at around 5%. Weidner properties, who own a significant percentage recently announced that they would be dropping rent prices by 10% to get them filled. That will force the rest of the rental prices down to compete. Perhaps less profit is forcing those that have small margins to sell? I still think the asking prices on the mulitunits are generally too high.
@Erik Nosich I agree on the asking prices on the multiunits are too high still. In general in Anchorage I feel like there is a lot of old crap that people are proud of and think it is worth more than what it is. I haven't heard of Weidner properties dropping rent that is really a sign of the times coming to state. Time to sell while there isn't a ton of properties on the market so it is still high, wait a couple years and join in again when the market is low.
I'm just looking for cash flow alone, and all my properties are well purchased so I can drop rents a lot and still be profitable, so I am going to hold onto what I have. I bought a well priced 4 plex that we rehabbed all the units and added an additional unit. We will be making about 500 a month while living there, then I estimate to make about 1900 after we move to the next one.
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