New Orleans Realtor?

Question

Hi, I'll be down to NOLA early May (from Philly) and wanted to see a few places as potential buy & hold opportunities. I am looking for properties along the St. Charles line, garden district, up in the Marigny / south 7th ward, etc. Areas that would be good airbnb properties for short-term rentals... but have good potential to eventually be longer-term buy and hold units.

I typically like 2/1, 800+ sq ft, but would be open to seeing 1/1. I am not a fan of condos, but am open to the discussion. Looking for units ~100k - 130k, but again, am open to discussion.

I have some real estate contacts in Philly and Bmore, but no one in New Orleans yet. Wondering if anyone here has some names they'd be willing to share?

john

Tanner Bruce · Answer

@John Fleming I don't know any realtors/brokers in NOLA, but I do have connections with several of the professional short-term rental managers down there if you're looking for someone to handle the airbnb/turn-key aspect of it.

John Fleming · Answer

Tanner, would you mind connecting with me on a PM so I could potentially meet/discuss with some of your connections?

John Fleming · Answer

Mike - thanks for all the feedback. Airbnb, from my nine or so months experience, does much better than the typical 12-month lease. I spend a lot of time looking on airbnb to see what various units go for nightly in different areas... and am almost always surprised in a good way. I have been following the airbnb issues in NOLA, and go through the same here in Philly. A tax is now part of the Philly airbnb program, at 8.5%. The nice thing is that airbnb actually handles it for their hosts... and it makes my paperwork much easier. My guess is that, with whatever happens in NOLA, they would do the same. You are right RE being closed to the quarter for short-term... but in my airbnb scouring I see that things do well in some other areas too. It is always interesting. I do appreciate all of your feedback!

Mike Wood · Answer

@John Fleming I would agree the area around Josephine & Carondelet is good, likely around there you are looking at a condo of some sort. This could likely airBNB.The area around Esplanade and Kerlerec I am guessing you are talking about Treme area, which is now pretty good. I have considered an empty lot in that area listed for $120k (considering building a 2-3 unit house). This is a maybe on the airBNB, as this area is getting fixed up, but still has some rough areas.I did see a couple of the condo listing in those areas, and they are where I would expect them to be, around $200/ft2, which does seem to be the norm. SFR would be north of that on a $/ft2 range. I would caution you, as I doubt these 1/1 condos could rent for 1% of their purchase price, check Craigslist, as its very well used around here for rentals. I can tell you that Rampart is a big dividing line for alot of people around here. So depending on how far north of Rampart you go, the tougher it would be to do short term rentals. Also know that in NOLA, its currently illegal to rent short term rentals (the city basically considers these a bed and breakfast lodging). The city council and city planning commission is looking at this right now and trying to propose new rules. I dont know all the details, but it sounds like a decent tax (+10%) would be imposed as well as some other restrictions. That hasn't stopped anybody around here, but once rules come out, the city could try and enforce them.I don't do short term rentals, so I can not speak to how these go. I believe that they closer to the french quarter they are, the better they rent.

John Fleming · Answer

Thanks for the feedback. I've spent some time there (not much in the past year), and know the landscape changes quickly, of course the same is true in both Philadelphia and Baltimore. That being said, how do you feel about the area around Josephine and Carondelet. I've always thought that section, right off St. Charles, is fairly safe. The NOPD crime map doesn't show much significant crime activity there. I've stayed just off Felicity there and felt rather comfortable. I also appreciate the area just a couple blocks west of Rampart around Esplanade and Kerlerec. How do you feel about those areas?

Mike Wood · Answer

@John Fleming I have to totally agree with @Braden Smith on this. I am a buy & hold and build and hold investor that lives and invests in NOLA, and based on what you said, you are not going to find anything.St. Charles line, garden district and Marigny are all way, way over your budget. If you think you found something, its cause its in a really shady section of town. In NOLA, 3-4 blocks is the difference between $500 homes and projects. Your south 7th ward is a broad area, and while you might find something in your price range, it definitely wont airBnB, and likely is not so great area. Some of south 7th ward is starting to gentrifying, but its no where near ready for airBnB. I am an active buyer in the "New Marigny" and "Upper Bywater" area now, but even land is selling for $30-50k, and most houses are looking for north of $100/ft2 for something that needs a decent amount of work.I'm actually surprised that someone from out of town would be interested in NOLA from an investor standpoint. Its pretty expensive, although you can make money here. I focus on long term duplex houses, and they can cash flow nicely, but rarely pass the 1% rule. From what I have looked at, there are few areas in the city with SFR that can even come close to the 1% rule.Good luck with your search. You definitely need someone local to guide you, as the difference between a good neighborhood and a down right scary area is a matter of blocks. I am not trying to scare you, just want to give you a local perspective.

Braden Smith · Answer

I'll have to get the addresses from you on those... only ones I have seen that low are tear downs. PM me and Ill give you my cell.

John Fleming · Answer

Sure, let's connect. I've been watching a few on the MLS that are not far off... so a real estate expert (which I am not) might be able to find things that are worthy of discussion.

Braden Smith · Answer

Im a local Realtor and can tell you right off hand that you're not going to find properties in that price range in the areas you mentioned. You can't find a vacant lot for those prices in those areas.

Kimberly Jones · Answer

@Braden Smith can hook you up.