Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
I was hoping to connect with someone who had experience investing in Fairbanks area and Alaska in general. Just browsing the listings, there is a huge variations in prices. It seems that most SFH, duplexes, and triplexes are in the $150,000-$300,000 range. Is there a certain sweet spot or investing strategy that seems to work in Alaska?
Prices are all over the place. Would appreciate any insight!
Why anyone would move from Hawaii to Alaska is beyond me, but I'm an old guy and trying to do just the opposite. Anyhow, welcome to the North side of the pond!
For what it's worth (and I don't know how certain this is) but I just heard (in the last couple of days) that the Air Force is considering locating 2 Squadrons of F-35's in Fairbanks. If I remember right they're talking about 2,500 - 3,000 people. Could be a nice bump for the Fairbanks market and full disclosure: I know NOTHING about that neck of the woods.
My wife and I bought another house in Fairbanks/North Pole area. North Pole is between two military bases (Eielson AFB, and Ft. Wainwright Army Base). We purchased a SFR with a MIL suite that was easily partitioned off to make a 1/1. The mortgage on the property is just under $1,800/mo. The 1/1 rents out at $1,000/mo, with heat, water (well water), and electric included...no washer/dryer hookups in unit, and no covered parking. The property will be interesting to manage long distance (no separate utilities), and rental property managers are dropping like flies up here for some reason. There is pretty much only one game in town, and they charge way too much IMO. There are many reasons for the price disparities, everything from location (the hills are usually a few degrees warmer year-round, and above the ice fog), neighbors (typically a Sanford and Sons type hoarding houses randomly about....so nice houses go up next to what looks like a junkyard), no real building codes, so pretty much anything goes, etc. If you'd like to talk some more about it, or have some specific questions, please feel free to hit me up!! Oh yeah, for comparison, the house we bought up here listed at $300K....in the lower 48 it would likely list at about $190K-$215K...however, I'd wager you're already used to island prices, lol!
Correct, I am used to island prices. :) Although, I do see a lot of Duplexes in Fairbanks for $250-300k, and a fourplex or two in North Pole for ~$200k? Seems odd. I will send you a PM.
Since I will be living there for likely 3 years, the PM thing kind of worries me. I doubt I will be traveling there often after the 3 years (unless I happen to love it for some reason). The realtor told me her firm's PM company charges like 16% of rents? That's a farcry from the standard 8-12% on the mainland and in Hawaii.
Rental Property Investor · Enterprise, AL · Member since 2015 · 39 posts · 10 votes
10y
In TN my PM charges a 10% fee, but since I have two properties with him, he charges me 8%. Ive gotten recent quotes from a PM here that said tenant locate and lease up would cost me 100% of first month's collected rent, and then 10% thereafter. Most of the MFRs in the FBKS/NP area are just garbage from what I've seen. If you have some addresses you are particularly interested in, I could drive by for you, just PM me and I'll take a peek, and let you know what I think. I'm headed TDY for the next week, then to the field for a week or two, but there is a bit of time in between I could look. Let me know!
In TN my PM charges a 10% fee, but since I have two properties with him, he charges me 8%. Ive gotten recent quotes from a PM here that said tenant locate and lease up would cost me 100% of first month's collected rent, and then 10% thereafter. Most of the MFRs in the FBKS/NP area are just garbage from what I've seen. If you have some addresses you are particularly interested in, I could drive by for you, just PM me and I'll take a peek, and let you know what I think. I'm headed TDY for the next week, then to the field for a week or two, but there is a bit of time in between I could look. Let me know!
Investor · Little Rock, AR · Member since 2016 · 3 posts · 0 votes
10y
I have around a 2500sq ft duplex in North Pole, just outside of Ft. Wainwright that I live on one side until I PCS. Rents run around $1/sq ft of living space, add around $150/mo for a heated a garage (which is a huge selling point for some). I include heating oil in my rent, which you can average over the whole year to around $300-500/mo, depends on oil prices.
I haven't used a Manager (I've heard mixed reviews) while up here yet and handling a single tenant isn't that much of an issue, even working 50-60hrs a week.
In my opinion, shoot for a multi family, if you can get it for a good price and can put enough down to earn a positive cash flow. You get to bank 100% of your BAH, plus maybe a little extra if ya find a good deal.
Hopefully my novel was slightly helpful haha. PM me if you have any other questions.