All Forum Posts by: James Antin

Quote from @Konstantin Ginzburg:

@James Antin Congrats on your property and best of luck with the upcoming regulatory changes in the city. I am also an STR owner in New Orleans. I would love to connect and exchange notes sometime if you are open to it.

Thanks Konstantin! I got pretty lucky with my deal (i.e. cash flowing from month 1 and a modest profit from sale of property). Of course that came with a lot of sweat equity, hard work, research, time, and effort, but ended up paying off for me.

I'm in Colorado now, but am about to get into my second deal with a mountain property that doesn't have the same regulatory concerns New Orleans is going through, currently. 

Quote from @Stephen Keighery:

Quote from @Jon Lester:

Thanks for the update @Braden Smith.  I've been watching Google alerts myself but wasn't sure if this was finalized.  There are still plenty of residential homes zoned in commercial spaces but I bet they will start getting snatched up fast now.  Still a very hot market for medium-term too!

They are coming after Commercial now. There is a public hearing next Tuesday about it but they are looking to bring similar restrictions against the commercially zoned properties in Orleans Parish. I am going to be at the hearing to voice my concern. I have a commercially zoned Triplex and have one of the units as an STR. I am literally next door to a Daquiri store on one side a tailor on the next and the block is full of commercial premises. It would be ridiculous to put a restriction on my ability to STR in this area.

 Ridiculous as it may be, nothing would surprise me at this point from New Orleans city government. Its like they try to make the least sensible decisions possible.

Quote from @Braden Smith:

Hey @James Antin. Congrats! Sounds like a pretty good deal. One word of caution on the STRs though... it is looking like the city will move to only allow STRs where there is a homestead exemption in place after they finish their 9 month moratorium and study. Just in case, I would run my numbers with both sides having long term tenants and make sure it still works that way.

This was a owner-occupied Airbnb, so would have been good with the city either way. It was a modest duplex, which I lived in one side and STR'd the other side. I renovated each side and after 2 years of cash flowing, I sold the property and the airbnb "business", because I wanted to get out of New Orleans and didn't feel like having a long distance rental.

Investment Info:

Small multi-family (2-4 units) fix & flip investment in New Orleans.

Purchase price: $161,000

Cash invested: $10,000

First investment was an owner/occupant duplex in New Orleans. Rented out the owner's unit via a month-to-month lease immediately, while I lived and renovated the renter's unit. Took me 2 1/2 months to complete renovations on renters side. I moved into owner's side, and opened up Short Term Rental on the renter's side. Cash flow has been positive since first month of purchase averaging ~ $1,100 per month after mortgage and STR expenses.

What made you interested in investing in this type of deal?

Living for free, making an extra $1,000 on top of normal income, and learning from mistakes to do better on next investment.

How did you find this deal and how did you negotiate it?

Made an offer before the property was listed on MLS via my agent's contacts.

How did you finance this deal?

First time home buyer loan through conventional loan product via Iberia Bank. 5% down. 4% rate @ 30 yr fixed.

How did you add value to the deal?

Found, evaluated, financed, rehabbed, designed, and managed property.

What was the outcome?

I am currently listing the home for sale, and if I get a good offer I will sell for nice gain (avoiding capital gains tax, as the property was my primary residence for > 2 years.) If I don't get what I'm asking for, then I am going to rent the owner's unit out long term, and keep the renter's unit as a short term rental.

Lessons learned? Challenges?

Do more due diligence for what your neighbors are like prior to ask, and make sure the risk is factored into offer decision. I factored neighboorhood into offer evaluation, but I did not do specific due diligence int neighbors. The neighborhood is a mix of families, new constructions, section 8, etc. (lower/middle income neighborhood). However, my direct neighbors ended up being section 8, which may create issues for reselling home for what it should be worth otherwise.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

John Hendrix in New Orleans is a great agent/investor/property manager/developer. I use him for all my real estate needs currently.

Investment Info:

Small multi-family (2-4 units) fix & flip investment in New Orleans.

Purchase price: $161,000

Cash invested: $10,000

First investment was an owner/occupant duplex in New Orleans. Rented out the owner's unit via a month-to-month lease immediately, while I lived and renovated/updated the renter's unit. Took me 2 1/2 months to complete renovations/updates on renters side. Month- to-month tenant moved out, as I moved into owner's side, and opened up Short Term Rental on the renter's side.

Property has been cash flow positive from the first month of purchase. Cash flow is ~ $1,100 per month after mortgage and STR expenses.

Living for free, making an extra $1,000 on top of normal income, and learning from mistakes to do better on next investment.

How did you find this deal and how did you negotiate it?

Made an offer before the property was listed on MLS via my agent's contacts.

How did you finance this deal?

First time home buyer loan through conventional loan product via Iberia Bank. 5% down. 4% rate @ 30 yr fixed.

How did you add value to the deal?

Found, evaluated, financed, rehabbed, designed, and managed property.

What was the outcome?

I am currently listing the home for sale, and if I get a good offer I will sell for nice gain (avoiding capital gains tax, as the property was my primary residence for > 2 years.) If I don't get what I'm asking for, then I am going to rent the owner's unit out long term, and keep the renter's unit as a short term rental.

Lessons learned? Challenges?

Do more due diligence for what your neighbors are like prior to ask, and make sure the risk is factored into offer decision. I factored neighboorhood into offer evaluation, but I did not do specific due diligence int neighbors. The neighborhood is a mix of families, new constructions, section 8, etc. (lower/middle income neighborhood). However, my direct neighbors ended up being section 8, which may create issues for reselling home for what it should be worth otherwise.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

John Hendrix in New Orleans is a great agent/investor/property manager/developer. I use him for all my real estate needs currently.