All Forum Posts by: Drew Dim

Best of luck!  We looked at multi-family when we moved up a few years back and the #s were absolutely ridiculous!  Not saying there aren’t deals, we just couldn’t find what we were looking for.  

Are you wanting short term or long term tenants?  Airbnb type rentals works decent for me near Anchorage BUT our season is pretty much only the summer w occasional one offs.  I already have land w infrastructure going in for another venture and thinking about the tiny house rental on it for a temp light cash making but if you search VRBO/AirbNb for comps you’ll see they aren’t heavy cash makers, mostly due to the smaller season.   It also seems like they rent for maybe $100 per night (but likely less) and occupancy is maybe 75%/80% for a really good year (just my experience over the last few years).   

Now the growth of the base up there and housing shortages you may have some long term/ “off season” (non-summer) options, that wouldn’t been a bad thing but w the harsh winters, and likelyhood of cabin fever, is think your market is extremely small and even then, my requirements and checks would wipe out most of those interested.

I wouldn't waste my VA on it though. Save that for a quad-plex.

We recently moved to a new state (where properties are quiet expensive compared to TX) and we found a quadplex for sale for $429k. Rents are a bit below market at $955 and we want to owner occupy utilizing the FHA process. I believe rates could be increased around 100/150 per unit and still be quiet competitive. 1 unit is fully remodeled and the owner would like to stay in it. The other three could use the normal fix up.

Here's the run down. (#s came from listing agent so they should be solid as of last year)

Mortgage - $2365

Taxes - $512

Ins. - $200

Trash/all utilities - 475.    (Tenant pays their own electric)

Reserves (4%) - 152

Vacancy (2%) $76.  (Very low vacancy in city)

At current rental rates 

If I'm not mistaken Cash in Cash = 10.87%

Cap Rate = 7%

For an area that's challenging to find, is this worth continuing with?  Area is good, and there are def ways to add value to property.   Not a HUGE cash flow machine soooooo what are everyone's thoughts???

@Connor Maloney thanks and great to know there are properties out there.  We want to house hack and def don't want to live in Mountain view.   What area did you purchase in?  

Are you worried about the market?!?  We don't want to buy high and the market drop out and we're stuck with a high mortgage and low rent rates to keep with the market level.  We definitely prefer to buy low sell high which is why I am entertaining selling this perfect Houston rental

my company will pay for 1st years property management (since they're moving us) and we would put in under a property manager.   We would still be involved in online marketing and email/phone screening on tenants.

If we sell within 3 yrs we don't have taxes BUT if we sold immediately we receive several bonus options from our company like they pay realtor and closing fees etc.  this benefit adds quiet a bit in savings

Realtor fee = $9k ish.  Saved

Closing fees = $2.5k ish saved

Bonus of 5% -= $7,750 profit added to sale of house

These benefits alone total almost $20k in cash in pocket & savings

If we sold we need to sell now!  If we kept it would take us a little of 3yrs alone to make up the difference should we keep to rent.  

If we kept the house we we prob hold long time bec in the next few years it'll need a new roof and new AC.  So we would be in for around 10+ yrs

Is that too long?  Or take the $ and run?

My first home that I've lived in for 7yrs+ is now up for sale or rent due to a job transfer way out of state.  

I originally purchased it to be a rental as its a great location size etc.  the #s look like:

Mortgage (P&I) $414 (awesomely low!!!!!)

Insurance/tax/hoa etc: $480

Market rent rates $1400 + or - $50

So a great cash flow of around $500ish

I purchased house for $100k and could sell it for around $155ish easily (have several offers). Neighborhood is 80-90's builds so it's def aging,but will remain a fairly solid neighborhood.  

IF we sold it we would have around $70k in cash after fees etc.  the new market we're moving to is very difficult to find a cash flow property that makes sense.  (Alaska is tough).  quad or triplex we've see doesn't make us $500 a month and the price is around $400k or more so very expensive compared to TX.  

Should we keep the single family and landlord long distance OR sell it and take the cash?!?!?!?

Either way is a good option but we just can't decide and I could def use some advice, different perspective or what would you do and why

Thanks in advance

Here's a new one for ya.....

We just got back from our house hunting trip in Anchorage and we have no problem qualifying and we're planning on doing the FHA route on a multi BUT we can't seem to find anything that's in decent condition that each flows. The inventory or lack there of seems to be our greatest obstacle. Any advice or inside scoop info any ones willing to share??

How much of an impact of the market (price of purchase and rental rates) do you think military downsizing will have on the Anchorage/Valley area?

I wondered about the economy.  I can't remember where But I heard Anchorage is a 3 legged stool, Oil, Military, and Tourism (if I'm not mistaken).  Oil is currently hurting (as in Houston), military at be facing cuts, and if the economy swings, then ancillary spending will be cut thus fewer vacations. 

Moving to AK in Nov. I definitely have my wheels spinning on whether to buy, or wait, and if I wait, for how long.  

Where's that magic 8 ball?!?

Houston is experiencing the samething where MultiF's are through the roof.  Would now be buying high in Anchorage?

I realize the money is made at the buy.  Do you feel that the near future (year or two) anchorage will have a correction?