All Forum Posts by: Ethan Ray

 Thank you Richard!

We do not own any properties in an HOA(thank god), but I am interested in what you are referring to in Ordinance of Law coverage. I just want to make sure I understand as all my properties were built in the 70's. Is this generally wrapped up in my homeowners policy automatically and I just need to review to ensure? Or is this a separate coverage I will need to specifically add to my homeowners policy?

Thank you Jeff,

I appreciate your insight. I would expect that here in Alaska our biggest issues surround the seismic activity in the area, and the large quantities of snow that will destroy roofs/awnings or cause ice dams and subsequent water damage or mold in the house. I was thinking about reaching out to a local insurance agent to see if they would discuss with me the any statistics or observations regrading the majority of the claims in Anchorage. With this information I could better understand if those issues are something I can save for and stomach a large deductible for, or if its common enough(like places with hail damage) for me to justify keeping the lower deductible. 

Hello,

I've been reviewing my business expenses recently and have been exploring different ways to control my monthly expenditures. One area that caught my attention is insurance, specifically the trade-off between deductibles and premiums.

In my case, I've been a homeowner for the past five years and haven't had any claims that met my $2,000 deductible during that time. I have obtained two more investment multi-family properties in those 5 years which have not had claims either. While I understand that things do happen and when it does its quite nice to have the protection, I'm contemplating whether it's worth considering a higher deductible in order to reduce my monthly premiums. By doing so, I could potentially free up some funds that could be allocated elsewhere in the business but obviously have reservations at what level of risk I put myself in by doing so.

It's important to strike a balance between managing expenses and ensuring adequate risk mitigation. How do you personally approach this dilemma? Are there any specific factors or considerations you take into account when making this decision? Have any of you opted for a higher deductible to lower your premiums? If so, how did it work out for you? Did you find it financially beneficial, or did you regret it in hindsight? Alternatively, have you chosen a lower deductible, accepting the higher monthly premiums for greater peace of mind? Have you ever benefited from that? I'm interested in learning from your insights and experiences.

Any advice, or any personal anecdotes would be very helpful.

Hey Keila,

I must say, I'm quite envious of military personnel. If only I had known then what I know now about real estate, I would have put that housing stipend to excellent use. Let me give you a snapshot of the different multi-family properties I own here in Anchorage, spread across various parts of the city.

First, we have House 1 in Muldoon. It's a triplex with two long-term tenants and one unit used for Airbnb or Furnishfinder. The property is situated next to a park that provides access to the greenbelt, a central path throughout Anchorage. We do encounter a significant number of homeless individuals who use the pathway, but the only issue we've faced is the occasional drunk person in the park or passing in front of the house. Not a big deal. Our main concern here is if they decide to set up their tents on the property, although we've managed to keep our yards secured and prevent such incidents.

Next up is House 2 near Russian Jack Park. This triplex is located right next to an elementary school. Despite what many Anchorage residents might say about the area, we have experienced great success and minimal issues. The neighborhood may not have a suburban feel due to the presence of many multi-family properties, but it's safe, and we often see families out walking in the evening. There was one incident where a stolen car entered the neighborhood, and the thief was found sleeping in the car. However, none of this had any impact on my property or tenants.

Lastly, we have House 3 near Huffman Shopping Plaza on the south side of Anchorage. If you're looking for an area with minimal crime, long-term tenants, and a suburban feel, this is the place for you. Properties here are pricier, but they offer a significant buffer from inner-city activities. The wildest thing we've encountered in this area was a drunk driver being pulled over.

I completely understand your concerns. When my wife and I were searching for properties, we had similar worries. Anchorage and Alaska, when looked at purely based on statistics, may not seem like the best real estate market. However, I can assure you that there is plenty of success to be found here. I encourage you to pursue a multi-family property. One of the reasons I'm optimistic about Anchorage is that you don't have to compromise neighborhood quality for multi-family housing. The city seems to be more accepting of multi-family housing, allowing for continued rental demand, unlike many large cities in the lower 48 that could benefit from integrating more multi-family properties.

Wishing you the best of luck in your property search!

Best regards,

Quote from @Sepp Wigger:

Quote from @Ethan Ray:

Quote from @Sepp Wigger:

Hey Ethan, 

I live up here in Anchorage as well and the number of asphalt driveways that are in desperate need of repair is more than I can count. The main thing to think about in terms of home value is the neighborhood your property is located in. If you are in a standard suburban neighborhood and all the neighbors around are doing one thing, It's best to at least match what they are doing. There are a lot of homes in the De Armoun, Rabbit Creek, and O'mally that have little to no driveway, and it's normal. Personally, I would look at the location, condition of the overall property, neighbors, and if I am going to sell any time soon. Based on those factors I could decide if it would be worth investing time and money in. The cheapest option isn't always the best. 

If you do have any other questions or want to dm me with more info on your property please do. I am more than happy to help! 

Thank you, Sepp, its always a treat to connect with fellow real estate professionals in Anchorage. My property is conveniently situated near Wonder Park Elementary, just north of Russian Jack Park. It is a triplex with driveways at both ends of the building. While most neighboring properties have asphalt driveways, the two located behind my house accessed via a dirt road on the south end of my property, have gravel. My wife and I are implementing a buy and hold strategy, however, we have considered a 1039 exchange within the next 4-5 years for an apartment building or a large multifamily property which is why I concern myself with the potential value impact of tearing out the asphalt.

My thoughts are that since the southern driveway which is in terrible condition, opens up to a dirt road, and the other houses on that dirt road have gravel driveways, that I could rip out the asphalt on that side of the house, replace with gravel, and it would blend in with the houses behind me.

Does that sound logical or would it still be of concern to add gravel when the rest of the neighborhood (excluding the houses behind me) retains asphalt.

 I would agree with you both. It sounds and looks like based on the image that a gravel driveway would fit in just fine and honestly would be better than a poor-quality asphalt one. Especially considering the dirt road that proceeds your driveway. I would go for it and congrats on the great property and best of luck on growing your portfolio! 

 Thank you Sepp, you have been so very helpful. Are you a fellow property owner, real estate agent, or both?

 Thanks Bob...

I appreciate the "well" thought out advice...

I have never had the pleasure of visiting, but I am assuming Cleveland doesn't experience earthquakes all that often and while I understand you do get cold temps, you don't get Alaska cold temps and so your advice of "don't be cheap" would perhaps be useful (but probably not) if I owned in a place where the elements were not going to destroy my driveway. In regards to shoveling, this would be an issue if our ground didn't turn into solid ice by early December. I have a gravel side drive and have not had to add any gravel for the last 3 years. My question however was directed more toward the property value affect of a gravel driveway, not so much your opinion on how much I spend to resolve the issue. If you would like to elaborate on your "dont be cheap" advice such as "if you go cheaper then your property value will see xyz effect" then perhaps there would be something to glean from your contribution.

Kindly,

Thank you, Sepp, its always a treat to connect with fellow real estate professionals in Anchorage. My property is conveniently situated near Wonder Park Elementary, just north of Russian Jack Park. It is a triplex with driveways at both ends of the building. While most neighboring properties have asphalt driveways, the two located behind my house accessed via a dirt road on the south end of my property, have gravel. My wife and I are implementing a buy and hold strategy, however, we have considered a 1039 exchange within the next 4-5 years for an apartment building or a large multifamily property which is why I concern myself with the potential value impact of tearing out the asphalt.

My thoughts are that since the southern driveway which is in terrible condition, opens up to a dirt road, and the other houses on that dirt road have gravel driveways, that I could rip out the asphalt on that side of the house, replace with gravel, and it would blend in with the houses behind me.

Does that sound logical or would it still be of concern to add gravel when the rest of the neighborhood (excluding the houses behind me) retains asphalt.

The main issue is that my driveway, which measures approximately 27x30, is in poor condition with noticeable cracks and significant indentations in the asphalt. Recently, one of my elderly tenants, unfortunately, fell on the driveway and broke her wrist. While she did not pursue any charges because she has a tendency to fall on various surfaces and possesses adequate insurance coverage, I am concerned about the safety of my tenants and the potential for future liability if someone else were to fall and seek damages.

To address these concerns and prioritize the safety of my tenants, I have decided to replace the current deteriorating asphalt driveway. After obtaining some quotes, I have chosen to remove the old asphalt myself and install a new gravel driveway, as it seems to be the more cost-effective option, totaling around $1500 based on my calculations.

Now, my primary question revolves around the impact on the house's value. I am uncertain whether replacing the deteriorating asphalt driveway with a gravel driveway would be a worthwhile investment in terms of the house's resale value, or if it would be better to opt for another asphalt driveway. In other words, does the type of driveway affect the sale value of a home?