SFR in Alaska Fairbanks, North Pole, Anchorage

[Osmany Linares]

Hello everyone, I'm about to invest in a SFR in North Pole AK near FBX. I ran the numbers and it works out if I include the utilities but doesn't leave much meat on the bone. I was wondering if anyone has any suggestions as far as including the utilities or what's customary in this area? Thanks!

[Ralph R.]

@Andrey Y.  @Erik Nosich my properties are all out of state. Some 10 years old some less than a year. I was trying to point out the market is very local. As an investor it's easy to over analyze. You must look at the whole Forrest not just one or 2 trees. I see posts on here where people try to analyze every detail to the last penny. Or try to do every bit of DD according to some set of specific rules they read some place. Sometimes you have to use common sense. Most people will tell you the market in alaska (at least on the road system) is poised to fall. This is what I think Erik is alluding to. Common sense tells me it's poor management to purchase before the market falls as opposed to waiting until after it falls. If you are looking off the road system this may not be the case. If you will remember I told you when we spoke before (9 or 10 months?? Ago??)that FBX  has the cheapest housing in the state or at least close to it. Do you see why now??  I also recall telling you it would be difficult at best to manage these properties from out of state. Now I'm saying a purchase in anchorage or in the valley could drop in value drastically as well as associated rents. Couple that with some high leverage low down PMT financing and you have a recipe for disaster. FBX  at least has some chance as the primary income there is federal money. The population is transient (military and colledge). I would guess that COULD (no guarantees) create a better rental environment.  Many of the slopers, oil field techs, and construction people living in anchorage and the valley have and will continue to see jobs declining.  That part of the Forrest is unhealthy timber in my eyes RR