All Forum Posts by: Hans Rodvik

There are general economic reports, that do touch on housing, that come out from the Anchorage Economic Development Corporation (AEDC) each year. You can find the most recent reports here:

http://aedcweb.com/

Also, there is the BOMA (Building Owners and Managers Association) which has info about the market in the state. Their most recent report can be found here:

http://www.bomaanchorage.com/index.php/documents/ They are more focused on commercial properties, but do have some insights on the small multifamily market.

AK is in a recession - 10 to 15K jobs have been or will be lost since oil prices tanked in 2015. Higher unemployment as well. The market definitely seems flat and prices are coming down, in the small multifamily world. I've been on the hunt for roughly a year to get a 4plex and am sure glad I didn't buy last year.

@Shawn Roys great idea to head back home and save some big time cash! Love Set for Life by @Scott Trench - my top book pick for 2017. I've been recommending it to all my friends. 

I'm in the same boat as you though - looking for my first place, 4plex with an FHA loan. I've been watching the market for about a year or so now, and just saving and researching. The state is in a recession right now (though the medical/healthcare industry which you are in is doing great) so that means job loss and population decline. As a result, rents have come down & landlords have had to be more competitive here in Anchorage. Because of this market shift, at least from what I've been seeing on the MLS/Zillow etc, 4plex prices are coming down (great news for first time buyers). Come to the Real estate exchange club meetings, and Landlord's Almanac meetings when's you get to town.

I'll send you a PM on agent and lender info. 

Wade,

This is excellent! I'm 24 as well and am trying to buy my first property (4plex, me in 1 unit and renting out the other 3) here in Anchorage. Your story motivates me big time to take massive action.

Are you building out in Palmer? 

Keep up the good work man - it would be cool to connect some time. 

Hans 

@Kassandra T. Yeah the 4plex route totally makes the most sense. When did you get into REI? What part of Anchorage are your properties in?

Over the weekend I was driving around my neighborhood looking for 4plexes not on the market and was able to find a good number of them which was pretty exciting! I intend to do some direct mail to their owners to see if they are interested in selling. Any advice on ways to craft such letters?

A buddy of mine told me about the Landlords Almanac a while back, so thanks for the reminder! Now I just need to go :)

@James Cash Okay right on. 

Got any recommendations on security camera's/systems? Thanks for the input. 

@Connor Dunham Good to hear. How long did it take you to get that 2nd duplex after you got your first one?

@Jeremy Tompkins 2016 was my best year in the Bay in terms of total poundage! I primarily fish in Egegik, and sometimes go up to Naknek. When my brother is done with college we are going to get our own operation out there. 

Long term investing goals are probably like most BP members! Achieve financial freedom and get out of the rat race - replace my current income through cashflow from real estate investments, and be able to stop working the 8-5. Numbers wise I'd like to hit $100K per year in cashflow, and have over $1 million in net worth (equity built up in the properties I own).

Location is important for sure - it's a combination of all those criteria. Better tenants, higher rents, comfort, and hopefully higher resale down the road. I'd like to live in the 4plex for as short as possible so that I can maximize its potential. My guess is 2 years max - I'm thinking I could save up enough in 2 year to get myself into a condo/ZLL or duplex that I could "house hack." After that my plan would then be to again start saving and focus on getting another 4plex and just grow from there. 

Yeah my take on AK's economy is a bit different from yours. I think there are some positive things to come from the federal level with our Congressional delegation/F-35s coming to Fairbanks/Trump's plan for infrastructure spending/tax plan/more favorable towards business; but oil/gas/mining are what drive Alaska. I work for a trade association that represents over 500 Alaskan businesses, with 30,000 employees that do support work work in the oil/gas/mining industries and our members have laid off 3000 people since late 2014 - these are the highest paying jobs in AK. Our members have over an 80% Alaskan hire. AK Department of Labor numbers put out of state oil workers at about 30% of the oil/gas workforce. Regardless reports now put total job loss statewide at nearly 6000 - between private sector and public sector. Hopefully oil prices continue to rise, and our state doesn't change tax policies again that chase off investment. Our state govt. really has to implement a long term fiscal plan to fill the budget gap, that hopefully doesn't involve excessive taxes, so that businesses can plan for the long run.  

On the interest issue my agent has been informing me on that, and I'm definitely paying attention to it. I definitely want to get into a property this year, so hopefully rates stay under 4% for FHA/first time home buyers like myself!

Thanks for all the advice and comments!

@Rob Gillespie Ha! If I'm ever in Cleveland I'll hit you up! Thanks for the input. I've been trying to find an owner who lives out of town (and is older) as I feel like I'll have better negotiating power with someone who just wants to get out/retire and thereby allow me to make mymoney going into the property. 

@Brian Volland Yes, I've been looking at Eagle River. It is one of the other areas I've considered, I just forgot to mention it in my original post. After I acquire my first property I'm very open to the Muldoon area - because I won't be living there. With the crime increase in Anchorage I just value living in a better part of town. When I'm not owner occupying Muldoon and the other less appealing parts of town will be where I look to get much better cashflow. What is the "automated housing referral network?"

@Ronald Laurion That's good to know regarding the natural uptick towards April. Yep, I've accepted the fact that I won't be able to get as good as cashflow on my first property if I find one in South Anchorage. Right on! Congrats on having those 2 properties. What are your tenants like in that part of town? 

@James Cash Thanks for the welcome, and tips. Outside of rents coming down some, are you seeing values creep down yet? Outside of south Anchorage, what would you say is the next best (in terms of safety, quality of life, and cashflow) bet for a decent part of town to owner occupy in a fourplex? UMED?

Hi everyone,

I've been on BiggerPockets now for a few months  and realized I should finally make a post. I'm a lifelong Alaskan, born and raised in Anchorage. Currently I am working full time in Anchorage (and I also commercial fish in Bristol Bay) and am attempting to buy my first property. 

After running the numbers on duplexes, triplexes and fourplexes I've come to the conclusion that I'd like to purchase a fourplex. My reason being is that I intend to owner occupy, and rent out the other units. A fourplex is the only multifamily property that I can get into currently that will allow me to nearly live for free (or under $500 per month in expenses - mortgage, utilities, taxes, maintenance, capex, etc.). I intend to use an FHA loan for those who are wondering.

I've been in the hunt now for a few months pretty heavily. I'm working with a great agent in town who specializes in multifamily properties. I'd like to find a property in the SW or SE part of town. Given that I'll be living in this property I do not want to buy in Mountain View, Fairview, Russian Jack, and certain parts of Muldoon. I have not yet found a property that I've been wild about...it seems like not much multifamily inventory is hitting the market these days. 

What I'm really looking for is advice on what other investors in town are doing given the current state of our economy (recession), the unstable fiscal climate at the state government and loss of oil jobs which are now spilling into the broader economy. Are people holding back, looking for deals, selling out? Should I hunker down and continue to save, and wait until the market really bottoms out? Is the multifamily market bottoming out or staying strong? 

Likewise, I'd love to connect with anyone who knows of fourplexes for sale that aren't on the market, or who knows anyone with a fourplex in the SW or SE part of town that may be reaching a point in their life where they'd like to sell.

I'd love to hear any advice you all have for a guy like myself looking to get into the real estate investing game! Financing strategies, buying strategies, land lording strategies, etc. I'd love to pick people's brains who have experience in our market with multifamily properties. I'm game to get coffee with any who is up for it. 

See you all around the site!

Thanks,

Hans Rodvik