new orleans - looking for something specific - & a great realtor

[Joshua B.]

I am looking for a specific type of property in the New Orleans area, reaching out to the forums if anyone has a highly recommended and great realtor that can help find something like this.

Looking for a single- or double-unit place that can double as an Airbnb. I travel a lot for work and plan to use the property when I am in town for business that I plan to be conducting in the New Orleans area. A couple requirements that I am thinking for the place:

1) single or two bedrooms. Can be a one- or two-unit place.

2) Location - looking for out of flood areas, and a nice neighborhood. Looking for something that can either be renovated to a very nice place or something that is already turn key. Basically an “A” - or a “C”/”B” property that can become an A with some work. Location is very important here.

3) Security is important as I will be out of the area at times and I will be renting the unit on AirBnb. This comes back to location, but also may make sense to find something like a flat with a full-service entrance and 24/7 security or a nice duplex in a great area. However, I know that sometimes some of these type of places don’t allow Airbnb.

4) Looking to use VA financing - so a realtor with experience or connects in this is important.

5) flexible on timeline. Optimal goal would be to be close to closing on a property by Jul2019.

Thanks in advance to anyone who wants to weigh in on the NOLA area or has a great point of contact to recommend.

[Braden Smith]

Hi @Joshua B.. I am both a real estate investor and a licensed realtor in New Orleans. I have been licensed since 2013 and I was investing prior to that. I know the New Orleans real estate market quite well and can provide some insight for you, as follows:

The city of New Orleans is going through some major changes with the STR rules and regulations. The city council instituted a 9 month moratorium in order to conduct a study, and then issue new rules and regulations for STRs in Orleans parish. During this moratorium they will not issue any new STR licenses, nor will they renew any that expire during the moratorium. I believe this moratorium ends in May 2019. The unofficial word on the street is that the new rules/regulations will only allow STRs with a homestead exemption, meaning an owner lives on the premises and uses the property as their primary residence. This seems to be the trend with STRs in most major metro areas across the country.

Everything in New Orleans is in a flood zone. The city is below sea level and basically a giant bowl, with levees surrounding it. There are more and less favorable flood zones, but everything is in a flood zone. But even then, the elevation of the particular property as it compares to the base flood elevation for the neighborhood is what will determine the cost of the flood insurance.

Most condo and apartment buildings do not allow STRs, so a unit with a full service entrance and 24/7 security would be difficult to do legally. 

Using a VA loan will require that the property be in mint condition, as the VA is rather strict on the condition of the property since they are providing 100% financing. So a property that needs work wouldn't be likely to work with a VA loan.

See here for a recent forum post on STRs in NOLA:  Airbnb - New Orleans

See the following links for more info:

New Orleans City Council issues temporary ban on most short-term rental permits

Councilwoman pushes permanent restrictions for short-term rentals

New proposals in New Orleans for short-term rentals

Most New Orleans short-term rentals could be linked to homestead exemption holders

Preliminary vote on New Orleans short-term rental changes delayed; a look at new timeline

If you have any questions I can answer, please feel free to reach out!