Impact of Rising Insurance Costs and Property TaxesOne of the most significant challenges in the Greater New Orleans real estate market is the rising cost of insurance.

For Class C+ and below, the age of the home, the socio economic status of the tenants, and the neighborhoods in which those properties are located impact the month to month profits.

I would throw caution at giving credibility to news stories about rates driving people out of Florida or increased natural disasters impacting rates.

Black market-  most economies that have something that impactful happen, causes the taxpayers to move to a black market approach.  4.

If you haven't bought or sold any real estate recently, the new rules in play may leave you wondering how this may impact your financial responsibility in the transaction. 

This decision can impact your time commitment and the overall profitability of your investment.Location: Focus on areas with strong rental demand, population growth, and good job markets.

Buying a new, or nearly new property, even when at a 10% premium to the market, typically allows for higher rents to be achieved, provides for warranty transfer on items like appliances, roof, windows, and general construction, and prevents cap ex issues to impact annual ROI for the first 10-20 years.

But if asset protection is a key concern, it’s worth discussing further with your attorney to find a balance that works for you.This has no income tax impact.

Here’s a great article that walks you through how to qualify for REPS status.https://www.aicpa.org/resources/article/tax-rules-for-real-estate-professionalsEntity Structure ComparisonBe sure to consult with a CPA or tax attorney as the entity structure you select can have a significant tax impact.

With medium interest rates, you might see a slight impact on cash flow, but BTR properties often still perform well due to their new construction and lower maintenance costs.I’m currently working in the Indianapolis market, specializing in new build duplexes that we construct with strong rental returns in mind.