Rental Property in Kenai with Property

[Krystin Habighorst]

Investment Info:

Single-family residence buy & hold investment in Kenai.

Purchase price: $463,049
Cash invested: $172,424

The sprawling, 1,881 square foot open layout and tall ceilings of this ranch style home allow for proper entertaining. The gigantic back deck is perfectly situated with a gas fire pit for sunny days. Maintenance is minimal with a rock garden and tons of perennial flowers. Adding to this is the privacy from a master bedroom split-floor plan, so the other two bedrooms are across the house. Like any Alaskan, toys are a must and finally there's room with an oversized two car garage and a large combination storage shed and greenhouse.

While the investment wasn't perfect pricing, it was perfect timing for us to quickly move before the school year. This house was purchased with the intent to live in, then rent out later on, since we had an addition to the family for the rest of the year. The good pricing kicked in with the land associated in this deal: 2.66 acres with the house, then ~4 acres purchased with it at borough assessment value.

Lessons Learned:
1) Patience is a virtue! We could have waited and purchased something at a better price, but the 2021 Q1 housing boom tested us with 8 declined offers.
2) You'll spend more on a purchase for yourself than you would on an investment. Or, at least I will.
3) If you need to close ASAP, offer closing costs.
4) Be prepared to fix weird. I just discovered I can't live with green, white, and black mismatched tiles all in the entryway. I'm going to get really good at either painting or grouting.

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

We didn't have an option at the time. When you add an extra female to the mix, more space is a necessity! The duplex was cute, cozy, and affordable for the two of us but with a third person it does get tight. As this was all a surprise, I was fortunate to not have closed on another multifamily early on in the year. For now we will live comfortably in this home.

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

I used my realtor. I also offered full closing, and went $3000 above asking price. It wasn't much, but enough to get their attention at the right time. 2021 Q1 housing was crazy at this time, so anything less than asking would get declined in our small town. My other half found this house on the first day it was posted and viewed it with my realtor within a few hours. Our offer was immediate and accepted the next day when the sellers were overwhelmed with offers and viewing requests.

How did you finance this deal?

Rental property, conventional mortgage with cash from savings.

How did you add value to the deal?

We will be... updating the tile and bathroom countertops.

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

Annette Pankowski was my realtor for this. She's excellent and inspired me to study for my real estate license!