Renting vs. Buying

[Colin Bussey]

I'll be moving to New Orleans, LA soon to run a large construction project which will likely last 2 years. I was hoping to get some opinions on renting vs purchasing. I currently own three rental properties and a primary. I can easily afford the NOLA mortgage while living there but was hoping to rent out the property after the project is completed. After running rental numbers I cant seem to find a property that cash flows utilizing the LTR strategy. I'm open to STR (lots of restrictions with these in NOLA) and MTR's but have no experience with either. Should I just rent and save my money for the next property that will cash flow, or buy in NOLA? One goal of mine is to also own a second home in NOLA so this might be the opportunity I'm looking for.

Looking forward to any advice I can get.

Thanks,

Colin 

[Theresa Harris]

Is it less expensive to rent or own in NOLA?  If it is cheaper to own, you may want to buy and even if you sell in 2 years (assuming the development is finished on time), you may still come out ahead in terms of selling the property vs paying someone else's mortgage.

[Stephen Keighery]

Welcome to NOLA. A big variable here is insurance. It would probably be cheaper to rent than to own here when you factor insurance in. That being said you aren't getting the benefits of owning the asset. I would personally rent if it is temporary so you don't mix a personal and investment decisions. While you are here and learn about the market perhaps buy a rental that you could analyze as an investment.