Multi-Family Investment in Anchorage Area

[Andrew Girgis]

Hello Bigger Pockets Community,

I’m looking at investing in Multi-Family rentals in the Anchorage area.

Currently considering 4 Plex properties, and also looking at 5-8 unit buildings.

Based on running the numbers, Cash on Cash returns are significantly higher in the Anchorage area vs. my hometown (Seattle).

Since I’m an out of state investor, I’d like to get local investors take on the following:

1. Appreciation – Zillow lists the appreciation forecast at around ~4% for 2021. Are investors seeing this market appreciating, or has appreciation been significantly slower? (I’m personally seeing many properties on the market for months, as well as price reduction)
2. Rent and Vacancies – Based on recent listing I have seen online, it seems as if rents are dropping. Are others seeing the same thing with their properties? Have vacancy rates been high?
3. Areas to Avoid - Are there locations in Anchorage that you would suggest avoiding?
4. Other considerations – Are there other considerations that I should take into account while looking for multi-family properties in Alaska?

Really appreciate your input.

Thanks,

Andrew