All Forum Posts by: Braden Smith

Construction costs are up about 25-30% across the board in the New Orleans area (labor and materials). I used to be able to knock out a full rehab for about $50-55/sqft, and a full gut for about $75-80/sqft. Nowadays those costs are 25-30% higher. In addition, holding costs are higher due to higher interest rates (construction loan from a bank is running about 9.75%) and higher insurance rates across the board.

Building costs in the New Orleans area are rather high these days. They are up about 25-30% across the board (labor and materials). To hire a GC to build a single family, it will run about $165-175/sqft. For multifamily, the costs will be even higher due to multiple high-ticket items... kitchens, baths, HVAC systems, water heaters, electrical panels, etc.

@Bryan Bissell The insurance situation in Louisiana is a mess and we won't see any improvements until we get through hurricane season. That's if we make it through hurricane season without any storms hitting us. If we get hit with any named storm... well, let's just say it will be a much worse insurance situation. 

My insurance broker, Pat LeBoeuf, said there are 7-8 carriers that have been approved to write policies in Louisiana now, but they are all waiting for hurricane season to pass. Hurricane season ends 11/30 so we still have a ways to go. If we don't get hit with any storms we should have more options to choose from by December of this year or the first quarter of next year, which will bring the costs down. But for now, it is what it is...

Here is a recent news article that states Louisiana is now the third-most expensive state for insurance:

Louisiana is the latest state to fall in the face of rising insurance costs

From the article:

Louisiana is the latest state facing an insurance crisis as damage from hurricanes (2020 and 2021) have led insurers to raise rates or leave the state entirely. Insurance.com reports that Louisiana is facing an extreme insurance availability issue that has many people leaving their homes and shutting down their businesses.

Louisiana is now the third-most expensive state for insurance according to , an insurance comparison website. The average annual premium for Louisiana is $5,353, which is three times the national average homeowners insurance cost.

Car insurance and flood insurance premiums are also rising within the state. Louisiana has the least affordable car insurance rates in the nation, according to the .

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Hi Logan. Nice to make your acquaintance! Happy to connect. I co-own GNO Realty, a local real estate brokerage serving the Greater New Orleans area and the Mississippi coast. I also own REvitalize Property Solutions, a local real estate investment and development firm.  

I agree with your sentiment and the market is already showing signs of this. There are many more active and available rentals in the market right now, especially in Orleans Parish. This increased supply may lead to reduced rental rates if the demand stays flat. I have also noticed many properties being listed for sale that were bought within the last couple of years, so I think many STR owners are being forced to sell as they overpaid for properties banking on the higher STR revenue.

Search the forums for "wholesaling". There are many posts about the topic. 

Also, check these out: 

https://realestatebees.com/wholesaling-houses-in-louisiana/

https://resimpli.com/wholesale-real-estate-deals/

https://callporter.com/blog/reverse-wholesaling-guide/

https://www.youtube.com/playlist?list=PLuSn8rgQxLqZ1pTN3qlYd...

I am a real estate broker. There are 8 carriers now approved to write policies in Louisiana but none of them are currently writing because we are in the middle of hurricane season. If we make it through hurricane season with no storms we will have other options available at the end of this year or the beginning of next year. If we get hit with any sort of storm this season we will be in an even worse spot. There is just not much to choose from at this time.

Check this out:  https://www.wdsu.com/.../southeast-louisiana.../44042503

 I may be interested depending on the location. I will PM you.

Insurance is an absolute disaster in Louisiana right now. Sky high premiums across the board with many people forced to go to LA Citizens. I use Pat LeBoeuf Insurance for all my properties.