Investing from the Bush of Alaska

Investing from the Bush of Alaska

Member since 2018 · 10 posts · 10 votes

Happy Super Bowl Sunday!  I'm not a sportsball fan, but I'll take any reason to celebrate in the current climate.


I am new to investing, and apparently new to the internet, I posted my last introduction post in Real Estate News and Current Events.  Even so, the community here was helpful and welcoming.  I was almost closed on a property, but thanks to a lot of sage advice, I pulled out at the 11th hour.  I'm still hungry to get into the market.


I am a dentist practicing in bush Alaska. Because of this I am necessarily interested in long distance investing.  I understand that this will necessitate working with property managers, but I am hoping that I can build a good team for mutual benefit.  

I can not find a property that fits the 1% rule.  I feel like I need a different approach to analyze properties.  I'd love any resources or advice that anyone could offer.  I am also interested in finding ways to maximize my tax benefits with real estate.

Thanks very much for reading!  I hope that I can contribute to the community here!

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Chris S.Business Member
Property Manager · Anchorage, AK · Member since 2017 · 175 posts · 160 votes
5y

I agree with @Keenan Fitzpatrick. Investing up here is a different animal. Have you tried Eagle River? Every now and then you can get a good price on a 2-4 unit or more, although they tend to get picked up quick. We have a place in ER that has been great, super easy to manage and get tenants. Hell even BP recommended it for the highest cashflow in Alaska, although I am not sure their criteria. 

Just keep looking, or talk to someone who knows the market well. I know @Jamie Rose really well and personally recommend him, he knows the area well. Keenan is also an excellent resource although I admittedly don't know him as well, only from his posts and meeting a few times. 

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  • Realtor · Anchorage, AK · Member since 2017 · 230 posts · 179 votes
    5y

    @Sean Davis

    I can name half a dozen off hand. Keep in mind that the 1% rule from gurus from the lower 48 often don’t take into account differences in expenses. A place like Alaska will have much different cashflow with a common boiler system, in a 50 year old building that has really high property taxes.

  • Chris S.Business Member
    Property Manager · Anchorage, AK · Member since 2017 · 175 posts · 160 votes
    5y

    I agree with @Keenan Fitzpatrick. Investing up here is a different animal. Have you tried Eagle River? Every now and then you can get a good price on a 2-4 unit or more, although they tend to get picked up quick. We have a place in ER that has been great, super easy to manage and get tenants. Hell even BP recommended it for the highest cashflow in Alaska, although I am not sure their criteria. 

    Just keep looking, or talk to someone who knows the market well. I know @Jamie Rose really well and personally recommend him, he knows the area well. Keenan is also an excellent resource although I admittedly don't know him as well, only from his posts and meeting a few times. 

  • Investor · Anchorage, AK · Member since 2018 · 73 posts · 75 votes
    5y

    @Sean Davis - with the amount you are prepared to put down and as passive as you want to be, you shouldn’t limit yourself to residential properties.  You can swing a 20%-30% down payment on a commercial building.  You might even consider industrial or out of state investments... there are much better cashflow returns elsewhere in the country, and you don’t have the benefit of being “local” to anchorage or mat-su, so you might as well behave like an out of state investor here too.

  • Member since 2018 · 10 posts · 10 votes
    5y

    @Allen S. I think you are right.  Casting a wide net would be beneficial for me.  Can you recommend any resources to start evaluating other regions?  I don't know where to start other than reading Bigger pockets posts and searching on Zillow - seems inefficient.

  • Investor · Anchorage, AK · Member since 2018 · 73 posts · 75 votes
    5y

    I think BP has a data product but I’m not terribly familiar with it... I would also look for any market reports or moving trends.  Figure out what metric you’re really after.  Maybe it’s rent/price ratio, maybe it’s job growth or population growth.  Whatever you decide to look for, I can almost guarantee there’s more information than you have time to digest.  But as you do, you’ll get faster at it and hone in on exactly what will fit your goals...

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