New to BP and to New Orleans

[TJ Laird]

Hey everyone,

My job has me relocating to New Orleans in June so I'm looking for some guidance regarding real estate in the city. Relatively new to rei but have rental properties in other cities and would like to begin to add here. I'm not familiar with New Orleans but, from what I've read, it seems like the city has been going through a period of gentrification over the past 8 years.

Right now my thoughts are to buy a duplex or shotgun and house hack. Preferably a fixer upper/ somewhat distressed in the 7th ward.

Any input on potential growth locations, contacts/connections for wholesalers, or just general suggestions would be greatly appreciated.

Additionally, does anyone know anything about the housing market in Bay Saint Louis MS

Appreciate the help,

TJ

[Braden Smith]

Hey @TJ Laird. I second what @Mike Wood said above. The really cheap properties that are left in NOLA are in rough areas. We have seen some strong appreciation and increase in property values in recent years. In 2015 alone we say a 14% increase in Orleans parish, which was an unprecedented increase for the metro area over the past decade. That increase in 2015 put average prices in the city since Hurricane Katrina at nearly 51 percent higher. The average house sold for $356,000 in the last half of 2015.

In 2016 things slowed down a good bit with just a 2.6% increase by the end of 2016 based on cost per-square foot. The average home sale price actually declined slightly -- by less than 1 percent -- from $356,047 in 2015 to $353,400 in 2016.

But the eight-parish metro area saw a 5 percent increase overall in the average price per-square foot in the final six months of 2016, boosted by bumps of 13.5 percent in St. Bernard Parish, 8.2 percent in Jefferson Parish and 3.6 percent in St. Tammany Parish. 

In 2016 we saw a new trend of prices surging in the suburbs and slowing in the city center during the last half of 2016, reversing a years-long trend of urban neighborhoods leading the market with big price gains.

At this point the smart investor may want to look to the suburbs...

Also, the 7th ward is huge and is comprised of several distinct neighborhoods. It runs all the way from the Marigny Triangle in the South by the river up to the Lake Terrace and the lakefront in the Northern most part of Gentilly. Some parts of the 7th ward are pretty decent, some are up and coming, some are in terrible condition and some are downright dangerous.

New Orleans has a very unique real estate market that changes drastically from block to block. If you don't know where those dividing lines are you can end up in bad situation real quick.