Denver, CO · Member since 2017 · 15 posts · 2 votes
Hey everyone,
New to the New Orleans area and actively looking to buy. I have experience buying in other states but not so familiar with the local rates for rent, insurance, garbage, sewage, elec fees for landlords owning multi-unit. The rental rates seem really high compared to other markets I've compared to. Am I missing something?
This particular property is a quadplex. Anyone familiar with 70113 zip code could share experience on accuracy of my numbers?
Real Estate Junkie · New Orleans, LA · Member since 2008 · 274 posts · 165 votes
8y
That is Central City. Central City is pretty much one of the scariest parts of New Orleans. Are you thinking of buying sight unseen? Am I seeing correctly that you are going to be in the deal almost $10k over the ARV? @Blair F. is correct, do your insurance shopping before you spend too much time crunching numbers. The rates are most likely going to blow your mind.
New Orleans, LA · Member since 2013 · 47 posts · 36 votes
8y
You need to do some research on your insurance and property taxes numbers. You are low. Insurance is a big one. Wind/hail insurance (for hurricanes) is expensive.
Metairie, LA · Member since 2016 · 67 posts · 41 votes
8y
Things are really tight in the NOLA market right now (just as I observe them). Because of that, whenever I am analyzing something recently, my first instinct is: if it works on the numbers side, move quickly and be prepared to find something out later that may nuke the deal. Margins are really thin around here right now.
Real Estate Junkie · New Orleans, LA · Member since 2008 · 274 posts · 165 votes
8y
That is Central City. Central City is pretty much one of the scariest parts of New Orleans. Are you thinking of buying sight unseen? Am I seeing correctly that you are going to be in the deal almost $10k over the ARV? @Blair F. is correct, do your insurance shopping before you spend too much time crunching numbers. The rates are most likely going to blow your mind.
Developer · New Orleans, LA · Member since 2015 · 1k+ posts · 898 votes
8y
@Colette Chase I agree with @Kimberly Jones, be careful about the area. My guess is your project rents are too high. Your Taxes are way too low, go to nolaassessor.com for an estimator that is very good. Water/Sewage/Garbage will likely run what you have or a bit more $170/month, assuming four units. As other stated, your insurance is also too low.
In New Orleans, $100k does not buy much, and my guess is that there is are some big issues with this property. Given the zip code and the price, this is not a purchase to be done sight unseen.
You would also need to find out of each of the units has separate electrical & gas meters. This is likely an illegal fourplex, with only one or two meters (street pic looks like a typical shotgun duplex). That could put you on the hook for most of the electric and gas.
Investor · New Orleans, LA · Member since 2012 · 968 posts · 747 votes
8y
Hey @Colette Chase. I am both an investor and a realtor in the New Orleans area. If you'd like some info about the New Orleans market shoot me a PM and I'd be glad to bring up to speed. We have a very unique real estate market here and for outside investors and those that haven't lived here for a while it can be a real challenge...
Rental Property Investor · New Orleans, LA · Member since 2018 · 6 posts · 0 votes
8y
To piggy back on what Mike said, if this is an illegal 4 plex, section 8 will not cover a unit that is not registered with the tax assessor, so that will make renting the unit much tougher.