Alaska's Unemployment Rate

[pittsflyer]

Originally Posted by Haolejohn

You should contact Pitt about investing in the RE market. I bet you two would make a killing.

I have decided its almost impossible to make a killing becuase the price points are too high so I will probably die in my chair at work or try to find something else to invest in.


I like real estate and have good ideas but its tough to find the right piece of real estate for the right price to actually make more than 5% ror. For as much captial as you have to tie up 5% is pretty paltry.


Not sure what the new strategy is now. Maybe do index funds and just let it ride ...

[Metlakatla]

Originally Posted by Re3iRtH

What is your thought on investing in multifamily real estate in Anchorage? 8-10 units. I have been looking into this asset class and am too chicken to invest out-of-state in apartments (at least actively). I have read that there has been job decline in all fields except health care since late 2015. One of the simple rules in RE investing is not to invest in a place where this is population decline, but the numbers seem to still pencil out.

My thought is that I'm not interested in investing in apartment buildings anywhere in the state.

[pittsflyer]

Originally Posted by Metlakatla

My thought is that I'm not interested in investing in apartment buildings anywhere in the state.

Tourist hotel rooms/buildings could be a good idea, the problem is start up costs.

[Re3iRtH]

Originally Posted by pittsflyer

I have decided its almost impossible to make a killing becuase the price points are too high so I will probably die in my chair at work or try to find something else to invest in.


I like real estate and have good ideas but its tough to find the right piece of real estate for the right price to actually make more than 5% ror. For as much captial as you have to tie up 5% is pretty paltry.


Not sure what the new strategy is now. Maybe do index funds and just let it ride ...

I have lost all faith in any kind of investment involving stocks/mutual funds/retirement plans focused on mutual funds. Broker/fund fees (many of which we don't know/can't tell we are paying), taxes, inflation, and human emotion essentially result in returns approaching 0%.


I don't like the idea of some dude on the 60th floor somewhere in a round table, who is making big decisions on his company (which happens to be one of the stocks in my mutual fund), because his wife just cheated on him or he slept with the secretary. Real estate gives you somewhat control over your returns.


I am seeing about an 8 cap rate in Anchorage with >13% cash on cash returns at the moment, with conservative underwriting. Still seems to thin given that there has been slight rental income DECLINE over the last 2 years, although vacancy rates actually slightly improved.


Will have to wait it out or buy carefully selected out of state properties I guess.

[Re3iRtH]

Originally Posted by Metlakatla

My thought is that I'm not interested in investing in apartment buildings anywhere in the state.

That's what I am leaning towards. I don't think it makes sense to invest in buy and hold real estate in any place where there is population decline, no matter what the circumstances are. Buying out of state single family homes is perfectly fine with the right team in place.