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All Forum Posts by: Daniel Purcell

Daniel Purcell has started 4 posts and replied 62 times.

Post: Landlords: Describe your most problem-free tenant ever

Daniel Purcell
Pro Member
Posted
  • Rental Property Investor
  • New Orleans, LA
  • Posts 66
  • Votes 41

@Sue K.

Our current tenant in our quad is amazing. She has an autistic son, works full time, pays in advance for 6 months, looks out for us, gets our packages when we’re out of town, puts up with Airbnb guests, bakes us cookies, and is always sweet and friendly. Literally the goat of tenants.

Post: Real estate in Louisiana

Daniel Purcell
Pro Member
Posted
  • Rental Property Investor
  • New Orleans, LA
  • Posts 66
  • Votes 41

@Michael Hudson

Welcome to Louisiana!

I'm also and investor/property manager/STR'r/wannabe flipper.

Happy to help and just throw ideas out!

Post: Newish investor looking to build my portfolio

Daniel Purcell
Pro Member
Posted
  • Rental Property Investor
  • New Orleans, LA
  • Posts 66
  • Votes 41

@Josh Farrell

Welcome to NOLA! Your new friends in the city are here to help!

Post: New Orleans STR Rules - Simplified (Residential Version)

Daniel Purcell
Pro Member
Posted
  • Rental Property Investor
  • New Orleans, LA
  • Posts 66
  • Votes 41

You are correct Stephen! HU-MU can get a commercial or residential license. In your scenario, you would get a commercial & operators license unless you had someone like me or another property management company that already has an operators license to operate the unit. The ruling on commercials is that 1 unit OR 25% of the units on the lot, whichever is greater. You would need to pay $2000 total for your permits. $1,000 for your commercial license and then another $1,000 for your operators license since commercial licenses have different fees and parameters. If you choose to have someone run it for you, you will only need to have the commercial license and spend $1,000.

Post: New Orleans STR Rules - Simplified (Residential Version)

Daniel Purcell
Pro Member
Posted
  • Rental Property Investor
  • New Orleans, LA
  • Posts 66
  • Votes 41

Hey fellow BP'ers,

So I've been getting PM's about the new rules and though I would post since there is a common theme: What the heck are the actual rules?

The first thing that us non-lawyers need to understand is that this is an open interpretation document. Although the document attempts to define a broad distribution of situations, it is open to interpretation.

Here are the basics for all residential STR....r's? (STR'ers?):

1. Homestead Exemption - You don't even get a conversation unless this is your "primary" residence. The city wants to limit "abuse" of the STR platform. The Mayor has stated that they are eating up the already limited housing options for poor & low-middle class citizens in the city.

2. Zoning - There is a whole template in the STR Handbook (too large to post here) that will let you know what your house zoning means, and what the requirements are for your zoning (parking, etc). You may need to request to re-zone if your property is "Katrina" zoned. Meaning there were properties that were given permits to add units to pre-existing structures, but were not required to re-zone. You can find out your zoning on the property viewer website. http://property.nola.gov

3. Licenses - Residential & Operators - Now this has a few layers. You will need both of these if you plan on running it yourself, BUT it depends on what type of property you are running. 

3a. - Partial Residential - If you plan on renting out bedrooms in your main residence where you live, this is for you. Whether you have a SFH, small, or large residential you have an opportunity to rent out bedrooms (up to 5 & 2 guests per bedroom). For example, if you rent out your furnished basement with 1 bedroom and you live above. $250/year for the partial license.

2b. Small Residential - For us that own doubles, this is for us. You are able to rent out your entire second unit (up to 5 bedrooms with 2 guests per bedroom). Now the city initially said they would limit the amount of days, but upon going down there and spending time with the city workers there (they are very nice) it seems there won't be enforcement on the number of nights rented out. (This could change at any time obviously.) $500/year. 

2c. Large Residential - For the good people who own a triplex or quad, Large Residential is your permit. Same rules apply to you as doubles, but across all your units that you don't live in. $500/year for EACH of the units you plan to STR.

2d. Operators - If you plan on doing the STR yourself, you will need to shell out the cash for this but only if you are renting out additional addresses on your property. If you are renting bedrooms out of the home you live in, there is no cost for the permit, but you still need to apply one. If you have one unit of a double you are renting out, you will need to shell out an additional $150 for your operators permit. If a multi (more than 1 full unit address) then you will need to shell out a smooth $1,000.

2d(d?) - If you have a property management company handle your STR, then good news is you don't need to have an operators permit as you can use the one they have applied and paid for. Bad news is you still have to pay them to run it for you.

Hope that helps navigate the seas on a surface level for your NOLA STR! Happy to answer questions below! I've spent too much time picking the brains of the STR group at City Hall and think I've got a good idea of where they are at!

Post: Seller is in bankruptcy, but his agent didn't disclose to me!

Daniel Purcell
Pro Member
Posted
  • Rental Property Investor
  • New Orleans, LA
  • Posts 66
  • Votes 41

@Account Closed Thank you for the advice!

Unfortunately the way the soil is and the standing water issues the concrete is no match for the bayou! Not to mention how awful the S&WB is when it comes to their work that digs under the roads. Literally had a leaking pipe on our street that was fixed (thankfully), but instead of scheduling something with the city engineers/planners to properly repair/patch the road, the threw 1/4 ton of gravel into the hole and went on their way. NOLA infrastructures at its best!

Post: Seller is in bankruptcy, but his agent didn't disclose to me!

Daniel Purcell
Pro Member
Posted
  • Rental Property Investor
  • New Orleans, LA
  • Posts 66
  • Votes 41

@Michael Lee

Great point! Lesson learned!

Post: Seller is in bankruptcy, but his agent didn't disclose to me!

Daniel Purcell
Pro Member
Posted
  • Rental Property Investor
  • New Orleans, LA
  • Posts 66
  • Votes 41

@Guifre Mora

I agree fully with your question! I don’t want court cases, I want property lol

Took your advice and the seller agreed to pay inspection and appraisal costs if we don’t close in 2 weeks.

Thank you for your response!

Post: Seller is in bankruptcy, but his agent didn't disclose to me!

Daniel Purcell
Pro Member
Posted
  • Rental Property Investor
  • New Orleans, LA
  • Posts 66
  • Votes 41

@Bob Floss II

I went back and looked to see if it was on the title commitment. It was not disclosed that it was happening.

I appreciate your time and knowledge on this!

Post: Seller is in bankruptcy, but his agent didn't disclose to me!

Daniel Purcell
Pro Member
Posted
  • Rental Property Investor
  • New Orleans, LA
  • Posts 66
  • Votes 41

Something I've never dealt with happened today: The seller is going through chapter 11 & 13 bankruptcy (and has been before we went under contract I found out) and his agent just informed me today of this. We were scheduled to close today, but they asked for an extension to 2/12 with a close on 2/14. Come to find out, the seller's bankruptcy lawyer dropped the ball somewhere (we aren't allowed to know where we were told) and we weren't able to close.

Come to find out the sellers agent knew about this the whole time but "forgot" to send us the information upon going under contract. She communicated it to the title company, but not to me. At no point in this process was I made aware of the bankruptcy until yesterday upon the sellers agent telling us we weren't able to close. 

Is there any legal recourse in terms of the money spent on inspections, appraisal, rate extensions, etc.? Or am I at the mercy of the bankruptcy courts? Also, if they seller has no money to put up because of the bankruptcy, what are my options even if I win a case against him?

Thanks as always!