All Forum Posts by: Greg Scully

@Angela Hollis My 10.5 Acres is assessed at 86k...I'm high and dry.  It's a nice quiet area over there.  That 27k assessment might be a little on the high side if it's significantly wet.  FYI, anybody that does some research on the area will find out that we are notorious for unpredictable wells.  Not trying to discourage you, it's just the way it is up here on Lazy.

@Wade Stahle Nope, not yet.  My goal is two deals in 2016.  Locally or otherwise.  I'm looking at full passive...managed and all.  My wife and I also own a small business that is our main focus, so for now I'm just looking to diversify and get the ball rolling with turn-key.   But, I'm open to the right opportunity if it presents itself.

They can put a raised septic if needed.  They are substantially more expensive.  The well is a crap shoot...asking the neighbors about their well depth may give you some indication.  I'm out here on Lazy Mountain and it's all over the place for wells.  One neighbor is 40 ft, I'm 240, and at least one property has one dry well and second poor well, so even the neighbors success has limited value. All those contingencies a potential buyer will be looking at too.  If there is a substantial value to lot in terms of view, privacy, etc maybe somebody with deeper pockets will take the risk.

Right on, I'll get looking for a good investment minded mortgage broker. I've got a few specific scenarios worked out. Basically, I am thinking that my primary and the investment property would both have loan to value ratios of 65% or so, and the investment property would also have some contingency set aside as well. I'd have some some cash flow, safe ratios, and a bit of a jump on building equity to reinvest in the future. I set a goal of two SFR hold and rent deals for 2016...just trying to figure out a solid strategy.

I am learning lots of general theory and best practices. Lately it's more apparent that it is each person's specific situation that will yield the path.  Time to start building some relationships.

I am out here in Palmer.  A few immediate things come to mind.  

1. Everyone in Alaska is looking at some hit on their income over the next few years either by taxes, a reduction of PFD's and possibly higher local property taxes to make up for lost state funding.

2. Anchorage has actually lost people in the past couple of years (about 1k I think) but the valley has continued to grow consistently.  

3. New multi-family seems to be a big trend in the valley right now, especially down Knik Goose Bay Road and the core area around South Wasilla (sometimes referred to the Gateway area).  No real numbers to offer, that's a windshield observation.

4. Palmer is not seeing the same population growth as the rest of the valley...it is growing, just not at the same rate.  It's more of the bedroom community with Enstar, MEA, MTA, Troopers, the Main Borough presence, the School District all in it's city limits I believe.  So, I think it's pretty stable.

What does all that mean?  Wish I knew.  I think the valley rental market should be good.  With more challenges to conventional lending, a lower median income than Anchorage, and a little uncertainty in terms of taxation, staying in a rental might have it's appeal for awhile.

I remember the decline from the eighties, this is not the same story.  We are far more diversified economically.  Although there may be some high end properties that mat need to be sold if slope jobs continue to be cut.

I am trying to figure out which option is best for me. I have a substantial amount of equity in my primary residence, but my payment is high from a previous refi to a 15yr note. If I get a HELOC to invest in a SFR for long term hold and rent I will effectively INCREASE my payment obligations on my primary.

If I do a cash out refi at 30y my primary payment will go down. I could then use the difference between my old primary payment an the new one for principal reduction, other tax deferred investments (IRA), capital expense account, have a little fun, etc.

Any insight or suggestions are appreciate.  I've been a wall flower while trying to educate myself, it's time to get personal;).

Thanks.