Investing in Louisiana
Hello, I am thinking of investing in a duplex to rent out and have my first rental property in Louisiana and I wanted to know if there is anyone out here in Bigger Pockets that is investing in Louisiana. Thanks!
We've purchased many apartment buildings all over Louisiana and the most shocking expense to make sure you underwrite sufficiently for is insurance. Windstorm is a huge expense. We used to underwrite $650-$750 per unit annually but that was a few years ago. Maybe someone else can chime in on what those costs could be now. Check also to see how badly the property may have flooded in the past and how often. See if it has proper drainage.
Hey Agustin,
I do not have any properties in LA but would like to hear what areas you are investing in there. I sent you a PM.
Best of luck,
Quote from @Agustin Rossi:
Hello, I am thinking of investing in a duplex to rent out and have my first rental property in Louisiana and I wanted to know if there is anyone out here in Bigger Pockets that is investing in Louisiana. Thanks!
I know this was posted 2 months ago, but I am looking to invest in Louisiana as well. Did you pull the trigger on something?
We have invested in Louisiana. Here is our experience: There is considerable potential to manage a yield-bearing asset, but as @Alice V. mentioned, insurance costs have soared, to $1,250 per door. In addition, hiring qualified personnel for maintenance/office is a challenge and maintenance/repair costs are also higher when compared to Texas.
Quote from @Dominic Richardson:
Quote from @Agustin Rossi:
Hello, I am thinking of investing in a duplex to rent out and have my first rental property in Louisiana and I wanted to know if there is anyone out here in Bigger Pockets that is investing in Louisiana. Thanks!
I know this was posted 2 months ago, but I am looking to invest in Louisiana as well. Did you pull the trigger on something?
Hey Dominic! I am traveling to Louisiana tomorrow to look for properties in Baton Rouge, Ruston and New Orleans. I am talking with many realtors, insurance people and lenders right now to find the best deals and to compare quotes and for the numbers to be more specific and keep making sense. I am having some issues finding insurance in Louisiana since many providers left because of the flooding and hurricanes that happened in the past, and insurance is very expensive but I have connected with you on BP so I will keep you posted if we get a deal in this trip, but very soon we will do our first one for sure. We have a friend in Louisiana that is a contractor and another friend that has 2 rental units there already so this is the reason we are looking in Louisiana, plus costs in NY where me and my business partner live are way more expensive of course. Thanks for your reply! Sorry for my late one!
Quote from @Shan Radhakr:
We have invested in Louisiana. Here is our experience: There is considerable potential to manage a yield-bearing asset, but as @Alice V. mentioned, insurance costs have soared, to $1,250 per door. In addition, hiring qualified personnel for maintenance/office is a challenge and maintenance/repair costs are also higher when compared to Texas.
Thanks Shan!
Quote from @Agustin Rossi:
Quote from @Dominic Richardson:
Quote from @Agustin Rossi:
Hello, I am thinking of investing in a duplex to rent out and have my first rental property in Louisiana and I wanted to know if there is anyone out here in Bigger Pockets that is investing in Louisiana. Thanks!
I know this was posted 2 months ago, but I am looking to invest in Louisiana as well. Did you pull the trigger on something?
Hey Dominic! I am traveling to Louisiana tomorrow to look for properties in Baton Rouge, Ruston and New Orleans. I am talking with many realtors, insurance people and lenders right now to find the best deals and to compare quotes and for the numbers to be more specific and keep making sense. I am having some issues finding insurance in Louisiana since many providers left because of the flooding and hurricanes that happened in the past, and insurance is very expensive but I have connected with you on BP so I will keep you posted if we get a deal in this trip, but very soon we will do our first one for sure. We have a friend in Louisiana that is a contractor and another friend that has 2 rental units there already so this is the reason we are looking in Louisiana, plus costs in NY where me and my business partner live are way more expensive of course. Thanks for your reply! Sorry for my late one!
@Agustin Rossi,I have been investing in Baton Rouge for the past 4 years and currently have 28 doors there. Let me know if you need any help with insurance contacts or if you want to talk about return criteria in the area. I’m also an out of state investor.
I'd be interested in knowing what kind of returns you are getting (cash flow and COC). What other states are you investing in?
Quote from @Edgard Leite:Hey Edgard! Thanks for this reply! If you could give me those insurance contacts that would be great, thanks so much! I also DM you to meet tomorrow if you would like or Monday that we will be touring properties with my business partner in BR to talk about real estate and the return criteria in the area. Thanks again!
Quote from @Agustin Rossi:
Quote from @Dominic Richardson:
Quote from @Agustin Rossi:
Hello, I am thinking of investing in a duplex to rent out and have my first rental property in Louisiana and I wanted to know if there is anyone out here in Bigger Pockets that is investing in Louisiana. Thanks!
I know this was posted 2 months ago, but I am looking to invest in Louisiana as well. Did you pull the trigger on something?
Hey Dominic! I am traveling to Louisiana tomorrow to look for properties in Baton Rouge, Ruston and New Orleans. I am talking with many realtors, insurance people and lenders right now to find the best deals and to compare quotes and for the numbers to be more specific and keep making sense. I am having some issues finding insurance in Louisiana since many providers left because of the flooding and hurricanes that happened in the past, and insurance is very expensive but I have connected with you on BP so I will keep you posted if we get a deal in this trip, but very soon we will do our first one for sure. We have a friend in Louisiana that is a contractor and another friend that has 2 rental units there already so this is the reason we are looking in Louisiana, plus costs in NY where me and my business partner live are way more expensive of course. Thanks for your reply! Sorry for my late one!
@Agustin Rossi,I have been investing in Baton Rouge for the past 4 years and currently have 28 doors there. Let me know if you need any help with insurance contacts or if you want to talk about return criteria in the area. I’m also an out of state investor.
Quote from @Dominic Richardson:
I'd be interested in knowing what kind of returns you are getting (cash flow and COC). What other states are you investing in?
Hey Dominic, today we toured 8 properties in New Orleans with my business partner, with 3 that needed some renovation work, 2 of those could be ready to move in quickly, and the other 5 needed way more work. We are only looking at multifamily since there are so many of them in New Orleans. We run the number of these properties on the calc of BP and they would give us with conservative numbers on the rehab (estimating to put more than needed) and on the rents (market rent but conservative), good returns, like Cash on Cash return (CoC) between 2-6% and Cash Flow between 986 to 12000 per year, so anything from 100 month to 1000 a month, after expenses were taken, so from this cash flows only taxes are missing to be taken, with some properties needing us to put from minimum 40k to 90k down including rehabbing them. There is a lot of inventory for flipping houses and also for BRRRR and buy and hold in New Orleans. Hope this helps you make a decision. Any other thing let me know. Always happy to help!
Hey Agustin! Did you guys pull the trigger on these properties?
Quote from @Dominic Richardson:
Hey Agustin! Did you guys pull the trigger on these properties?
Waiting to get pre approved on 4 applications to see our options and then we will offer on 5 of 15 properties we saw, that we are very interested in.