All Forum Posts by: Connor Maloney

Andrey and Chris, That is correct. According to my realtor, things have slowed down and properties in the higher price points (I think above $500k-$700k) have been stagnant. It seems inevitable that prices will start to go down at some point, but how much and for how long, who knows. Some think that if it goes down, it won't be much just like it did back during the last recession. However, it is different this time because what is affecting the housing prices is the oil price which directly affects Alaska, so it will be interesting to see what happens in the next couple years. One thing is for sure, I am planning for the worst just in case. - Connor

Andrey, Yes, the costs are pretty high up here for most things. From my experience here in Anchorage, you are doing pretty well if you can find a place with a 1% or greater rent-to-value. With my limited experience and from what I have heard from others, you might be hard-pressed to find a nicely finished duplex that you will reach 1%. At least in Anchorage, 4-plexes seem like the better avenue to achieve higher rent-to-value percentages, but like you said there are more tenants to manage. When are you moving up here? - Connor

These costs are for all four units.  The costs for the duplex are for the two units combined except for the electricity which I only pay on my side.

Also, I own and live in a 2700 sqft duplex with two 3 BR, 1.5 BA units with a one car garage in South Anchorage. See below for utilities: - Trash: $25 - Water/Sewer: $160 - Gas: $150 - Electric: $100 for my side - I do everything else on this property myself

Hey Andrey, I own a 3600 sqft 4-plex in East Anchorage with three 2 BR, 1 BA and one 1 BR, 1 BA units and a 7 car parking lot. Below are the average utilities I see every month: - Water/Sewer: $180 - Trash (dumpster): $115 - Gas: $190 - Electric (common area and outdoor lights): $50 - Snow Removal: $350/year - Lawn Care: I do this myself so I'm not sure I hope this helps! - Connor

Thanks for your input @Greg Horn!  That sounds like a good idea!

Mark, Rebecca and Jeremy, 

Thanks for the great replies!  I appreciate the help!  Sounds like Kona or Kihei will be good places to look. I was just in Poipu and it does seem like a good place to have a vacation rental, but from what I could see, prices seemed high and I can imagine fees for landscaping or others adding up like you were saying Jeremy.

Mark Guagliardo , I am very interested in purchasing a vacation rental on either the Big Island, Maui or Kauai. Could you tell me of some good resources to learn about investing in Hawai'i and where some of the best places are to buy vacation rentals? Like most people I'm sure, I am looking for a place where my mortgage will be covered by vacation renters with about 75% occupancy or less so that I am making enough cash flow to cover expenses.

Welcome to BP!  You are in the right place to learn how to structure your deals.  Good luck!

Tully, I bought my first 4-plex in 2013 in East Anchorage off of Baxter (it's a little nicer there than what people normally think of East Anchorage). I then bought a duplex in South Anchorage in January 2015. I realize now that I definitely paid too much (about a 0.8% rent to value), but at least I have learned from it. Then, my wife bought a 4-plex last summer in East Anchorage off of Muldoon and 16th (I wouldn't go any further north than that). It had been on the market for about 60 days so we got a pretty decent deal and the numbers worked out as well as they did for the first fourplex I bought in 2013 (just over 1% rent to value). So, it is possible to find good deals even with record high prices of multi families. However, it may be worth it to wait a little bit to see where the market and economy of AK go. But actually, if you are living in an owner-occupied 4-plex that breaks even with you living in it, then you are much better off than somebody with monthly mortgage on a SFR or even somebody paying a normal rent rate. Keep asking questions on the forums. As you can see, there are lots of awesome folks on this site that want to see you succeed!