I just completed my first few analyses of a potential 4plexes I'm wanting to house hack. This first one is in the worst condition, but the best present cashflow. There are two 2 bed units and two 3 bed units. The vacant unit I saw was in rough shape and would need a new subfloor in the bathroom and probably a cosmetic kitchen remodel as well as new paint throughout. Another rented unit I saw was in good condition though. Currently rents total 4400, but market rent is closer to 5400-5700. Seller can't do any repairs but is offering 5k towards closing costs.

Midtown Anchorage

https://www.biggerpockets.com/...

This one is -763/month cash flow. Rents total 5135, but could probably be increased to around 6100. Oldest construction, but better maintained than the one above and in a better location. Doesn't really need any pressing renovations, just a good cleaning of the common area. Newer roof, fenced yard and carport for each unit with a garage for one.

UMed District Anchorage

https://www.biggerpockets.com/...

This last one is -847/month, but by far the best location. Much larger square footage and highest potential rents. However the largest unit (and the only one I saw) was trashed and needs new flooring, new cabinets and some hazmat level cleaning. Rents right now total 5370, but could probably be closer to 6700.

Just based on cash flow, the first one is the obvious winner, but will require the most updating and is the least favorable in terms of actually living there myself for a year. The second two even after raising rents, only cash flow a couple hundred dollars/month, which makes me question why I would go through all the headache of this plan just for that? Is this really the best path to financial freedom? Freedom being the key word here, so I'm worried about the headache of renting to this low income population based on statistical stereotypes. And all of these numbers assume I'm paying myself market rent for my unit as well. Would it be better to just move to find the cheapest rent I can in the area and save the difference for a larger downpayment next year? Or maybe I should look at investing long distance in the Midwest?

Anchorage, Alaska

2 Votes