Despite its diminutive population size, there are opportunities for house flippers in Alaska.
Overall, Alaska has solid economic foundations, with higher than average home prices, higher than average income levels, and extremely high safety rankings. In addition, the land of the midnight sun is unquestionably the most untainted state in the US, with only a third of the available land being developed.
Let’s now take a detailed look at how to flip houses in Alaska.
Alaska House Flipping Stats
Median Purchase Price
$185,436
Median Resale Price
$280,221
Average Revenue
$94,785
Price Per Square Foot
$169
Population Size In Alaska
731,545
Median Household Income
$76,715
High School Graduation
92,7%
Travel Time To Work
18.8 Mins
Best Cities for Flipping Houses In Alaska
- Anchorage
- Juneau
- Fairbanks
- Badger
- Knik-Fairview
Safest Areas in Alaska
- Bristol Bay Borough- Safety Score: 96.53
- Cordova – Safety Score: 93.99
- Unalaska – Safety Score: 92.02
- Wrangell – Safety Score: 91.73
- Haines – Safety Score: 91.12
Please note – All the statistics in this article are based on 2020 data. You can view the data sources at the bottom of the article.
The Basics Of Flipping Houses In Alaska
- Find a property in Alaska that is undervalued
- Source funding from a reputable lender
- Buy the property for a price that makes it possible to generate profit when it is resold
- Complete renovations that will increase the after repair value
- Find buyers for the property and sell it for a healthy profit margin
How To Find Houses To Flip In Alaska
1. Use FlipScout By New Silver
FlipScout is a free tool that helps you find most profitable real estate investments using data and intelligence. Find a property to flip or rent out anywhere in the country.
- Free to use
- Works for flips and rentals
- Get alerts to your inbox
- Calculates rehab costs automatically
- See ROI and rental income instantly
- Aggregate results from various sources
2. Leverage The Power of Wholesalers
Finding a good wholesaler can be very rewarding for a property flipper. Wholesalers tend to have access to all the most relevant property databases, and they often have unique personal networks. By using a wholesaler, you effectively gain inside access to their knowledge of properties in Alaska.
3. Attend Bank Auctions
Bank auctions often present opportunities to purchase properties below their market value. This is mainly because banks hold these auctions in order to sell the properties as fast as possible. If you attend bank auctions with a clearly defined strategy, you can potentially walk away with a new property that fits in perfectly with your investment portfolio.
4. Use Direct Mail To Find Off-Market Properties
Although it is considered an old school technique, direct mail can still yield positive results for house flippers. Direct mail has been shown to have a higher response rate than email, and numerous studies have shown that people actually enjoy checking their mailboxes. More importantly, you might be surprised by how many people have considered selling their homes. Your letter could be the trigger that they have been waiting for.
5. Sign Up To The Multiple Listing Service (MLS)
Even though MLS listings can be competitive, it is still a good avenue for finding properties to flip. The MLS is literally a database created by real estate agents, and it is filled with property details and statistics that can help aid your research process. There is a fee involved, but one deal is all you need to comfortably cover the costs.
6. Find Foreclosures
When properties fall into foreclosure, the primary goal of the loan originator is to recoup any potential losses. This is good news for house flippers, because properties in foreclosure often sell for less than their market value. If you are able to locate foreclosure opportunities in Alaska, there’s a good chance you will be able to purchase a property for less than its market value. This is why foreclosure can serve as a great platform for a potential flip.
Alaska Housing Market Analysis
House Flippers Are Focusing On Good Areas: There is only a small gap between the median home value in Alaska ($291,078) and the median resale price for house flips in Alaska ($280,221). This suggests that house flippers are concentrating on run down houses in good areas, which makes it possible to fetch a good resale value.
On this point, it’s worth mentioning that property flippers in Alaska are generating approximately $94,785 in revenue per flip. To achieve results like these, selecting the right property is key. Experienced flippers know how to find houses that have the potential to become significantly more valuable after completing well planned renovations.
Home Values Aren’t Appreciating: According to Zillow, home values in Alaska depreciated by 2.3% in 2019. In 2020, prices remained stagnant, with a 0.4% increase over the year.
Unlike most states in the US which have seen a big spike in both demand and home prices due to historically low interest rate, Alaska seems to be the exception to this rule. This could be explained by the simple reality that there is a limited number of people that are willing to live in the coldest state in America, despite all the beauty all the beautiful landscapes.
Houses In Alaska Are Quite Expensive: The Average home value in the US is approximately $266,222. The average home value in Alaska is approximately $291,078. In other words, homes in Alaska are about 10% more than US homes in general.
There are a few primary reasons for the expensive cost of houses in Alaska. One is the availability of land that is suitable for development. The other is the material and labor costs involved when building, given that most of the materials need to be transported from other states. As a house flipper, you should be particularly mindful of the material costs when completing renovations in Alaska.
The Unemployment Rate Is A Concern: Generally speaking, cities and states with strong labor markets are more attractive to property investors. It indicates that the need for housing is likely to grow over time, and this is encouraging for house flippers and buy-to-let investors.
In the case of Alaska, the unemployment rate has been above the national average since 2014. This is partially because the number of job opportunities is limited. Simply put, the labour market is closer to its saturation point than other states, and this can be a limiting factor for property demand and property appreciation.
Apply For An Investment Property Loan
If you’re ready to start your house flipping journey, New Silver Lending can provide the capital you need to fund your first flip. We offer ultra fast hard money loans with competitive interest rates and quick closing times. The entire application can be completed in less than 10 minutes.
Next Steps
If you’re committed to flipping houses in Alaska, the next step is to invest time and energy into finding the best possible property. We have outlined a number of methods in this post, and all of them can potentially bear fruit.
Once you have identified a property, using a reputable Hard Money lender like New Silver can help accelerate the house flipping process. Our company is built on speed, efficiency and user-friendly technology. The online application can be completed in less than 10 minutes, and we offer instant proof of funds letters to all of our clients.
Property Flipping Resources
Hard Money Loan Calculator: Analyze the costs of your next flip in detail with our hard money calculator.
ARV Calculator: Workout the After Repair Value of the property that you are hoping to flip.