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All Forum Posts by: Luke J Nelsen

Luke J Nelsen has started 14 posts and replied 102 times.

Post: Smoky Mountain Slow Down?

Luke J NelsenPosted
  • Real Estate Agent
  • Milwaukee, WI
  • Posts 105
  • Votes 41

Comparing the 2 listings we had active last year:

May 2023 we are up 2.5% gross revenue, ADR dropped 4% and occupancy is up 3% to 56.7% 

June 2023 we are currently down 34% gross revenue, ADR down 9%, occupancy is down 28% to 51%.

Our booking lead time is also down over 10%. So, i am still confident we'll improve the June numbers. However, it is unlikely we'll get anywhere nar last year's numbers.

Post: Short Term Rentals in Alaska

Luke J NelsenPosted
  • Real Estate Agent
  • Milwaukee, WI
  • Posts 105
  • Votes 41
Quote from @Jamie Rose:
Quote from @Luke J Nelsen:
Quote from @Jamie Rose:

@Luke J Nelsen - Personally, we do them in Anchorage and Wasilla - the two biggest population centers. Where Shaun is - Homer - is great for STR's if you can operate. Small town - limited contractors - so a local like him has a major leg up. But numbers are probably good.

Some of the top towns in which you can do it well:

Fairbanks, Palmer/Wasilla, Anchorage, Seward, Kenai, Homer, Sitka, Juneau, Ketchikan (all cruise ship ports I'd guess), Girdwood, Eagle River, Talkeetna. 


 Thank you for the insights! Do you feel the additional drivers of the Northern Lights in areas like Fairbanks would help increase winter occupancy better than places like Anchorage?


 It already has- this is why AirDna tells people to do FBX area investment - Aurora tourists - many from overseas - come between December and March to Fairbanks - it's a major driver - but also there are some bigger investments targeting those as well. 


 I agree! Do you own any property there? The Kenai Peninsula also intrigues me.

Post: Is the 1% rule dead in 2023 ?

Luke J NelsenPosted
  • Real Estate Agent
  • Milwaukee, WI
  • Posts 105
  • Votes 41

@Rakesh Balavanthapu

Don’t get discouraged and keep running numbers. That’ll help you narrow down your buy box. You’ll find the right deal eventually. Gotta get your reps in now!

I bought all of my duplexes above the 1% rule in 2020 and early 2021. (Milwaukee suburbs) Closer to .007% now if you are getting top market rents. I’d assume every market varies though. It’s definitely much harder to find cash flowing LTRs right now.

We transitioned to STRs in 2021. Definitely more work but you get paid well for it.

Post: Short Term Rentals in Alaska

Luke J NelsenPosted
  • Real Estate Agent
  • Milwaukee, WI
  • Posts 105
  • Votes 41
Quote from @Brooklyn McCarty:

I’d start by checking out the OTA’s and see what people are renting and in what areas. Also, check out the permitting too in those areas. 

I would think vendors would be hard to come by? But I could be wrong. You may find value in joining market specific fb groups. 


 Vendors are definitely a concern. Especially where the property I looked at is located. Very remote but beautiful!

Post: Short Term Rentals in Alaska

Luke J NelsenPosted
  • Real Estate Agent
  • Milwaukee, WI
  • Posts 105
  • Votes 41
Quote from @Jamie Rose:

@Luke J Nelsen - Personally, we do them in Anchorage and Wasilla - the two biggest population centers. Where Shaun is - Homer - is great for STR's if you can operate. Small town - limited contractors - so a local like him has a major leg up. But numbers are probably good.

Some of the top towns in which you can do it well:

Fairbanks, Palmer/Wasilla, Anchorage, Seward, Kenai, Homer, Sitka, Juneau, Ketchikan (all cruise ship ports I'd guess), Girdwood, Eagle River, Talkeetna. 


 Thank you for the insights! Do you feel the additional drivers of the Northern Lights in areas like Fairbanks would help increase winter occupancy better than places like Anchorage?

Post: Short Term Rentals in Alaska

Luke J NelsenPosted
  • Real Estate Agent
  • Milwaukee, WI
  • Posts 105
  • Votes 41
Quote from @Tyler Cobb:

Hey Luke,

I do STRs in Anchorage as well. Does great in the summer, during peak tourist season, but winters are tougher. Like @Jamie Rose said, contractors are more readily available in Anchorage and Wasilla where most of the population is. 


 For sure! Availability of contractors in the more remote areas is definitely a big concern of mine as well

Post: Short Term Rentals in Alaska

Luke J NelsenPosted
  • Real Estate Agent
  • Milwaukee, WI
  • Posts 105
  • Votes 41
Quote from @Timothy Chi:

We do LTR and MTRs in Anchorage with the plan to transitioning one of the units to a STR. Hoping to go live in July. While I don't have the experience yet to directly answer your question, we chose to have ours between the airport and downtown. It provides easy access for travelers who are visiting AK with decent access to tourist activities. We do have a couple unknowns though. One of which was that we initially planned to have this unit as a STR in the tourist season and an MTR during the winter. However with Alyeska becoming part of the Ikon Pass, we will likely get a lot more tourists. I wonder if the rentals in Girdwood will be full and people will have to find lodging in Anchorage. Happy to keep in touch and chat about what's working and not working.


 You bring up some great points! We just got back from a trip to look at a property somewhat near Fairbanks. I think the potential is there!

Post: Short Term Rentals in Alaska

Luke J NelsenPosted
  • Real Estate Agent
  • Milwaukee, WI
  • Posts 105
  • Votes 41
Quote from @Tyler Bobo:

I've got a few in Wasilla as well and working on one in Willow (another 30-40 minutes up the road) I anticipate the majority of the funds being made in the summer but a should pay the bills at least in the winter, we'll see I guess:) Alaska has a lot of tourists in the summer, and a lot less in the winter. South East panhandle area someone mentioned being expensive for a dive. Yep, the real estate there is stupid expensive and super expensive to build, get materials there, and there's a shortage of actually private real estate, so it's rough. I do very well here investing (small part is STR) but if I didn't live here I would invest elsewhere. Not trying to chase you away though, just my opinion. Also, if you need a Realtor in the Wasilla, Palmer, Willow area you can send me a message.
Tyler Bobo Keller Williams Realty Alaska Group


 Thanks for the insight! Managing remotely is definitely a concern of mine. The specific property I am looking at is very remote and would require on site staff. But hey, if it were easy everyone would be doing it!

Post: Short Term Rentals in Alaska

Luke J NelsenPosted
  • Real Estate Agent
  • Milwaukee, WI
  • Posts 105
  • Votes 41
Quote from @Zach Edelman:

I know Fairbanks Alaska was ranked as the #1 place to invest in Air BnBs in the US via Air DNA. 


 Great to know! Fairbanks area is where I'm starting my search. The properties near the Kenai Peninsula are also gorgeous! 

Post: Short Term Rentals in Alaska

Luke J NelsenPosted
  • Real Estate Agent
  • Milwaukee, WI
  • Posts 105
  • Votes 41

Hey BP Family!

I currently own in the Smokies and have been looking at other markets. Is anyone investing in STRs in Alaska? If so, I'd love to chat. 


-What areas of AK are you having success?

-What areas would you avoid?

Any help is greatly appreciated.

Thanks!

Luke