Purchasing 4plex vs Duplex in Anchorage AK

[Chait Borade]

I am a first time real estate investor in Anchorage AK. I was wondering about purchasing a 4 plex vs. duplex property for a first purchase with a FHA loan and owner occupied. Good 4plex's (good condition, location & competitive rents) in Anchorage are usually 450k & up. Duplexes range from 350k - 450k for the same criteria. I know it comes down to how the numbers look but given the current situation (low interest rates, uncertainty in the economy with regards to recession) I am torn up between purchasing a 500k & up 4plex vs. a 350-400k duplex. Additionally Alaska's economy is heavily dependent on oil prices and oil prices are currently in the gutter. All in and all there is too much uncertainty.

Any insight or comments/questions would be appreciated. Thank you. 

[Jaysen Medhurst]

@Chait Borade, first off, listen to the critique that @tim herman offered. Your expenses need a lot of work. Management will be 10%, vacancy ~8%. Repairs are low and CapEx is nonexistent (I figure 15% combined).

• You're not accounting for insurance. Talk with a local insurance agent ASAP.
• Include a budget for initial repairs. There's always something!
• What does "misc." cover here? Lawn care, snow removal? Be specific and break out those costs.
• Where is the $242 electric bill coming from? 
• Your income expectations appear to account for all four units rented, right? Run the numbers both ways: with you living there and after you move out and hold this as a pure investment property.
• Your loan fees are bonkers high. Confirm all of these.

If your analysis represents you living in one unit, I think you'll be ~$700/month out of pocket. That's pretty good. If this is with all units rented, then you're going to be losing money every month, which isn't pretty good.