Hey guys, I'm new to BP. I'm in Anchorage Alaska 99515. I was wondering if there's anyone who is using the BRRRR strategy in Anchorage. If so how has it been going? Any advice?
Real Estate Agent · Anchorage, AK · Member since 2017 · 294 posts · 182 votes
5y
@Account Closed - BRRRR in AK - yes! There are a few of us on here doing that - and more out there doing it. Are you actively BRRRR'ing? It's possible -but often requires the ability to rehab a property - through managing a project or sweating in a little equity. I'll post about my upcoming project later this week!
Anchorage, AK · Member since 2016 · 15 posts · 12 votes
5y
@Tommy Hopp Hi Tommy, welcome to investing. I've been slowly growing our investment portfolio and have a few rentals across Anchorage. Both our out last two properties were purchased using the BRRRR concept.
Real Estate Broker · Alaska and Oregon · Member since 2018 · 44 posts · 35 votes
5y
I bought a zero lot line in 99507 last year to BRRRR but felt like the market was too soft and it didn't rent quickly enough so I flipped it and decided not to invest in Anchorage right now.
Real Estate Agent · Anchorage, AK · Member since 2017 · 294 posts · 182 votes
5y
@Account Closed - BRRRR in AK - yes! There are a few of us on here doing that - and more out there doing it. Are you actively BRRRR'ing? It's possible -but often requires the ability to rehab a property - through managing a project or sweating in a little equity. I'll post about my upcoming project later this week!
Flipper/Rehabber · Anchorage, AK · Member since 2017 · 223 posts · 177 votes
5y
@Tommy Hopp
I've acquired two 4-plex properties this way and am working on a duplex. It's a great strategy and my preferred method. The deals aren't the easiest to find but they're there if you look hard. My suggestions to you are to get your strategy together. You're going to need to have different strategies for funding unless you'll be paying cash yourself. You're going to need a good contractor that doesn't overcharge or change order you to death. And you'll probably need help finding good deal at first and not just being set up on a search for foreclosures. Our market is not one where offers of 50% of list price gets accepted. If you're dealing with someone who really knows this market then they'll be able to tell you where an offer needs to be to get accepted and where your rehab cost needs to be to be profitable enough to BRRR.
Real Estate Broker · Homer, AK · Member since 2016 · 21 posts · 17 votes
5y
Hi Tommy, my husband and I did a BRRR in 99516. We skipped the rent 'R' and owner occupied the home for two years prior to selling. Although, we did lease a bedroom so we have half a rental "R' :P. Purchase price of the house was $250,000 cash. $120,000 in rehab, closing costs, realtor fee's, interest on the cash we borrowed. Appraised at $455,000 and we later sold it for $465,000. It took A LOT of sweat equity so that is something you will need to be prepared for and willing to do.
Like @Keenan Fitzpatrick mentioned above, the deals aren't out there in plain site. You definitely have to search for them. But when you do find one, it can be well worth the work it took to find!
Flipper/Rehabber · Anchorage, AK · Member since 2017 · 223 posts · 177 votes
5y
@Account Closed are spot on. Both are great strategies. I have a 4plex and a 5plex I'm fixing up over time as well as the two BRRR 4plex buildings. I think you'll find more deals to fix up over time but they will take a lot of money and effort over time. A BRRR property is usually all financed in but not always. The deal Valerie mentioned was right at 20% equity. Usually, you're looking for 25% equity if it will be a non-owner occupied rental. Her's just penciled out to owner occupy without mortgage insurance which is awesome. Feel free to clarify any details Valerie but in addition to getting the equity you needed, you also avoided capital gains tax by owner occupying and probably made a real nice profit when you sold, yeah? Tommy, the point of going into detail of the deal is that a lot of deals are similar to this. A rehab of over $100k on a $450,000 house is not uncommon. A deal just working out without a lot of excess "meat on the bone" is typical. There's deals to be had but, IMO, this isn't an easy thing to do to in our market if your goal is to make a ton of money fast without doing a ton of work or having a unique angle. It can be done but it's a long game and important to have a good team.
Have you ever thought about using a renovation loan product? They have great terms and I highly recommend them.