All Forum Posts by: Soren Loftus

Fairview neighborhood in Anchorage

https://www.biggerpockets.com/...

I just completed my first few analyses of a potential 4plexes I'm wanting to house hack. This  first one is in the worst condition, but the best present cashflow. There are two 2 bed units and two 3 bed units. The vacant unit I saw was in rough shape and would need a new subfloor in the bathroom and probably a cosmetic kitchen remodel as well as new paint throughout. Another rented unit I saw was in good condition though. Currently rents total 4400, but market rent is closer to 5400-5700. Seller can't do any repairs but is offering 5k towards closing costs. 

Midtown Anchorage

https://www.biggerpockets.com/...

This one is -763/month cash flow. Rents total 5135, but could probably be increased to around 6100. Oldest construction, but better maintained than the one above and in a better location. Doesn't really need any pressing renovations, just a good cleaning of the common area. Newer roof, fenced yard and carport for each unit with a garage for one. 

UMed District Anchorage

https://www.biggerpockets.com/...

This last one is -847/month, but by far the best location. Much larger square footage and highest potential rents. However the largest unit (and the only one I saw) was trashed and needs new flooring, new cabinets and some hazmat level cleaning. Rents right now total 5370, but could probably be closer to 6700.

Just based on cash flow, the first one is the obvious winner, but will require the most updating and is the least favorable in terms of actually living there myself for a year. The second two even after raising rents, only cash flow a couple hundred dollars/month, which makes me question why I would go through all the headache of this plan just for that? Is this really the best path to financial freedom? Freedom being the key word here, so I'm worried about the headache of renting to this low income population based on statistical stereotypes. And all of these numbers assume I'm paying myself market rent for my unit as well. Would it be better to just move to find the cheapest rent I can in the area and save the difference for a larger downpayment next year? Or maybe I should look at investing long distance in the Midwest?

Quote from @Nicole Thomson:

Quote from @Jamie Rose:

@Nicole Thomson - @Tyler Cobb - when's the next meetup? 

I showed up at 7 and they was no reservation. Or meetup that’s I could find. 

I won’t be able to make it unfortunately, but apparently it was moved to next Friday the 27th at 7pm instead.

@Connor Kapp

I'm looking to do the same thing with a 4plex this year! Best of luck to us both. The beginning of the learning process feels overwhelming, but I'm trying to stay focused and just keep learning one thing at a time. So far people seem very willing to help and share their knowledge and experience. Thankfully there's an abundance of information available today.

Quote from @Jamie Rose:

@Nicole Thomson - @Tyler Cobb - when's the next meetup? 

Hey everyone! I’m new to AK as of November and working in ER and Anchorage. I’m new to the real estate game, but currently devouring books and looking to house hack a 4plex and connect with other investors in the area. Sounds like there is a REI group in the anchorage area then?

Quote from @David L.:

hi, Dr. Loftus

60k in undergrad loans, 415k in dental school loans, 12k in credit card debt over the last 6 months. your situation is very typical for a new doctor. not too bad. only 60k undergrad and 12k cc debt are little high. the real difficult parts are marriage & your current mindset. many replies give some solutions which i think it is practical.   
2 things to remind my colleague:
1. you are in a very difficult profession. try to make more in a short time/retire in 11ys put you at more risk professional. be very careful.
2. REI is not the magic solution which i agree with Jay. approve with a good plan
all banks know dentist has reasonable income; loan is just a matter of time. another choice might be a good solution, my cousin worked for underserved area for 4 years, no debit with loan repayment program. leave this option open, not a bad choice. i am still paying mine. :)
work with your ex-wife, which is important for your kids and you

Thanks for the message David. May I ask what about my current mindset sounds like a difficulty? I feel like I finally have the right mindset.
1. It sounds like you're also a dentist? Our profession is definitely very difficult and demanding. Why would wanting to retire put me at risk professionally? As I mentioned in the original post, I'm certainly no fan of aggressive treatment or overtreatment. I simply plan to leverage my degree to do more than fillings. We can turn our degree into a business instead of just a job simply by owning offices instead of working in them similar to owning a home vs owning rentals. I don't actually mean I want to retire from working, just clinical dentistry. Maybe even just semi-retire to only do extractions, implants, and frenuloplasties. Who knows.
2. I certainly don't believe in any magic bullets. Just hard work and the belief that something other than the norm is possible. Looking back though, trading school for four years in the air force or army would have been a great plan, but I didn't take that option so private practice ownership, REI, and other ventures are my current plan now.
3. And yes, my ex and I are amicable and are working together to make sure our kids have the best life possible.

Thanks again david

Quote from @Chris Webb:

Hi @Soren Loftus, you mention that the system is broken, what does that mean to you? I am curious. 

That depends how deep you want to go 😜. Surface level.. eternal growth and expansion doesn’t serve humans or the earth well. We’re all suffering from chronic overstimulation and disconnection. This state of anxiety and inflammation has just become our normal. The education, food, tech, medical and financial systems are designed to keep people poor, dumb and numb so they make good worker bees and are easy to control.

Real estate investing combined with business ownership is honestly the best method I can see for rebelling and escaping that rat race and creating freedom for not only myself but also for my future grandkids. The other option that an increasing number of people are taking is simply opting out. Leaving their tech jobs to start community homesteads. That’s tempting and I’ve thought about it, but I have 550k in debt right now so I need to go deeper into the system first in order to break free of it. Also, I don’t actually desire to go full on homestead 😅

Maybe that’s a little too much honesty here though ha 🤷🏼‍♂️

Hello BP fam! 

1. I'm based in Anchorage AK and hope to invest initially here locally. I also have a brother who's flipped a few houses in Lynchburg VA who I've talked to about going in on a project together.

2. My goals are to turn my financial ship around and steer myself to financial freedom. I want to retire from clinical dentisty at 40 years old. That gives me 11 years to kill it! I've already got a plan that scares me.

3. I love biohacking and facilitating healing ceremonies. Mushrooms, breathwork, Ice baths, movement, etc. Something I'm actually holding with curiosity and compassion is how to be authentic to my values and beleifs and pursue wealth. I believe the system is broken, and I'm not entirely sure how comfortable I am exploiting it.

Quote from @Drew C Grossman:

@Soren Loftus - It takes a good amount of self reflection to realize the choices you made may have not been the best for you…I appreciate the honestly and I am sure you can to! Being aware of the situation is definitely a great starting point! Like many above have stated, keep the train moving and get some traction….it’s inspiring what a little momentum can do…

 I appreciate it Drew! Thank you for the encouragment! Momentum is everything

Quote from @Jay Hinrichs:

not sure why you think you made finacial mistakes unless your Dad was going to pay for your school. that was necessary and every doc goes through that.

Real estate is not a magic bullet wealth is created over decades those same decades working your profession will get you ahead no doubt.

I just dont see any mistakes you made other than maybe you could have saved your marriage. ??

 Medical and Dental student debt has skyrocketed in the last few years while insurance reimbursments have remained the same or gone down since the 90s. There's still good potential and opportunities in the profession for sure, but looking back I chose it pretty ignorantly. I might recommend others choose a different path depending on their desires, but I am where I am right now so I'm going to use it as a lever to get out faster.

The marriage ending wasn't my mistake, it's just part of my financial situation now. But plenty of mistakes and poor spending habits that had me wasting tens of thousands of dollars without investing any of it. Assuming that once I graduated, and my income rose life and money would finally be easier. As I've learned - foolish with a little, foolish with a lot.

 I enjoy many aspects of dentistry and I'm good at it, but I don't intend to be in it for decades. I plan to retire at 40. That gives me 11 years to kill it.

Quote from @Al Omran:

Soren, your post resonated with me on so many levels man. From the debt, relationship complications, driving for Doordash, listening to audio books while driving, and starting to finally build positive momentum coming into this year and having the drive from within to change my situation. Pray for nothing but the best for you brother!

 All the best to you as well Al! There's something about those jobs that put things in perspective for me. Helped me to get sick enough of my own foolishness to do something about it.