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All Forum Posts by: Allen S.

Allen S. has started 2 posts and replied 67 times.

Post: CPA & Attorney Recommendations in AK

Allen S.Posted
  • Investor
  • Anchorage, AK
  • Posts 73
  • Votes 75

@Jaik Webster I can see a need for one of your attorneys to be local, but that’s absolutely not required for your CPA.  Our CPA is at Anderson Advisors’ out of Las Vegas, and it’s been quite easy to upload all of our tax documents and schedule tax planning and review sessions.  Like @Keenan Fitzpatrick said, they’ve got a ton of online content, which is well worth diving into... 

Post: Choosing a Market to Invest in: Aim for Equity or Cashflow?

Allen S.Posted
  • Investor
  • Anchorage, AK
  • Posts 73
  • Votes 75

@Robert Swiss I would not consider Anchorage a “cash flow market” at all.  I assume you’re not already from here, and likely have not spent much time here, and so if you do move here, my recommendation is to rent for a year and thoroughly study the market and investment opportunities before you jump in to a house hack.  Don’t look at paying rent as “wasted money”... more appropriately you should look at it as buying patience and time for first hand education.

Working as a flight instructor or launching your aviation career can sometimes be a thin existence (unless you’re subsidizing that habit with your big oil job).  You’ll want to make sure that the investments you make add to your goals and don’t become a distraction or a financial speed brake.  This state is absolutely one of the greatest places for aviation on earth, and that’s exactly why I live here.  But just because the prices aren’t doubleplus insane like SFO or SEA doesn’t mean it qualifies as a “cashflow market”.  If you want cash flow then look to a market with good demographic trends (hint: ANC is losing population, the opposite trend that you seek).  Househacking can be done here, but make sure you have real information and numbers and not pie in the sky hopefulness.

Now, as a lifestyle choice with the best flying opportunities and an incredible place to live, ANC beats out those other two cities big time! 

@Tyler Bobo... drop me a line and I’ll put you in touch with my commercial banker at FNBA.  We have something very similar set up...

Post: Opinions wanted - Should I pay with cash?

Allen S.Posted
  • Investor
  • Anchorage, AK
  • Posts 73
  • Votes 75

@Bradley Thye At that price point, I would lean towards just paying cash for it.  You’re adding 5% just in the appraisal fee, and unless it’ll really put you in a bind, it’s probably not going to be worth jumping through all of the bank hassles.  More importantly it’ll be 1000% quicker and more simple just to write the check.  Your time is valuable, and I’m sure you’d rather spend that time looking for a new tenant than waiting on appraisers and dealing with bank stuff.

Another option would be to see if your bank has an in-house appraisal option.  My bank will use tax appraisal (or something very close to it) in lieu of using a traditional appraiser.  This isn’t totally free of fees, but it’s much faster and cheaper than a 3rd party appraiser.  

@Erik Nosich I would also recommend that you form a leasing company to lease your 8-plex from you on a long term basis.  Then that company is in the business of subletting each room... this will also help categorize your AirBnB income as passive income and not an active trade or business.  With longer months-long winter leases you'll be fine, but if your average stay is less than 14 days (I think) then you'll be taxed more like a hotelier and not a real estate investor...

Post: Crowdsourcing creative deal ideas for atypical partnership

Allen S.Posted
  • Investor
  • Anchorage, AK
  • Posts 73
  • Votes 75

If you have the funds to buy and fix the property, why would you do an equity split with a contractor and not just hire him to do the work?  To me it sounds like that is unnecessarily complicating your personal saga... keep it simple, time is money, get it done and pay to have it done right and done on time.  That might not be the cheapest sounding option, but it sounds like you’re already paying D to work, no need to get married to him too. Unless there’s some other personal connection and you feel obligated to cut him in...

Post: Heating fuel costs in Alaska

Allen S.Posted
  • Investor
  • Anchorage, AK
  • Posts 73
  • Votes 75

@Manuel E Urrego It’s just another line item for you to plan for.   It shouldn’t be too difficult to estimate what your yearly energy expenses will be on a given property.  Likewise with planning for 17% vacancy in Fairbanks... make your estimates match actual data and then next year you won’t be wondering why your “investment” isn’t making you any money.  I also recommend you get out of the monthly cash flow mindset and look at your investments based on their annual performance...

Post: Anchorage Alaska?

Allen S.Posted
  • Investor
  • Anchorage, AK
  • Posts 73
  • Votes 75

@Corey Brown We use Erik and @Kassandra T. at RPM Last Frontier...

Post: Using line of credit for down-payments?

Allen S.Posted
  • Investor
  • Anchorage, AK
  • Posts 73
  • Votes 75

I don't see why you'd have any issues using a LOC. We do pretty much the exact thing you're discussing in scenario B...

Post: Loan option strategies on commercial property with a partner

Allen S.Posted
  • Investor
  • Anchorage, AK
  • Posts 73
  • Votes 75

That sounds like it would just be a standard bank loan with a co-signer or guarantor.   Or maybe an owner occupied SBA loan.   Not sure what the benefit of using a hard money (expensive) lender would be for you.   Unless you’re ultra high risk or in the marijuana business or some other reason that would cause you to be un-bankable...