Owner Occupied Duplex in Alaska

[Krystin Habighorst]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Soldotna.

Purchase price: $410,000
Cash invested: $82,000

This is a 3200 SF, 6 bed, 4 bath, 2 car garage turnkey duplex with tall living room ceilings and nicer upgrades on lighting and staircases. There is radiant flooring throughout the townhouse styled layout. Even better - it's only a five minute drive into town.

What made you interested in investing in this type of deal?

After the divorce, I knew I'd feel more secure if I had someone else living nearby while I was working out of town for a month at a time. Downsizing from an overpriced lakefront SFH, this was an ideal situation. The aesthetics are nicer than a typical apartment complex, each side has a generous 1600 SF, and I fell in love with the feel of tall ceilings. This was a situational buy that was never meant to actually create an income.

How did you find this deal and how did you negotiate it?

Zillow. I negotiated the purchase with my realtor.

How did you finance this deal?

Personal savings.

How did you add value to the deal?

Buying under the tax assessed price.
Performing plowing and lawn maintenance.

What was the outcome?

TBD.

Lessons learned? Challenges?

1. Be willing to negotiate intangibles. I was able to trade repairs for earlier owner occupancy, rent free.
2. Be more vigilant in property viewings. Found several additional small items after owner occupancy had begun.
3. Don't be afraid to go lower than the taxed value. I was able to get the property $40,000 under asking price and $10,000 under the tax assessment value.
4. You can't deduct upgrades to the owner's side after purchasing. Upgrade first!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Realtor Charlotte Gaston and lender Sara Benner of Residential Mortgage were amazing and worked with my crazy scheduling and text-driven communication styles.