Occupancy Rate:You're smart to estimate 75% occupancy→that’s a conservative yet realistic approach, especially with the competition in New Orleans.

You just need to know which lenders to approach.

This approach provides financial stability and lets you focus on paying off your 4.75% mortgage faster.

In 2024, back-to-school and back-to-college spending has dropped as consumers adopt a more cautious approach following the pandemic surge.

Quote from @Jackson Ebersole: Hi Piper,It's always smart to flip properties in-state, and I'd like to share some updated insights on why this approach is beneficial, especially in the New Jersey area.Lenders typically feel more comfortable with in-state flips because:You can manage the rehab more easilyYou have better knowledge of local real estate trends and valuesYou can respond quickly to issues or make decisions fasterThere's a lower risk of fraud or being taken advantage of by distant partnersI can help you with recommendations for the New Jersey market:North Bergen: Continues to show strong potential, with average profits now around $150,000 per flip and a gross ROI of 85%.Willingboro: While specific flip numbers aren't available, the market remains active with a gross ROI now averaging around 130%.Gloucester City: Still a top performer, with gross ROI hovering around 180-190%, though still on smaller profit margins.Irvington: Home values have continued to rise, with a 20% increase over the past two years.East Orange: Has seen steady growth, with home values up by about 16% since 2022.Paterson: Experienced a 14% increase in home values over the last two years.Additionally, Jersey City and Newark have emerged as promising markets for flips, with strong appreciation rates and growing demand.

I think your approach is probably a good one for the adult child. 

Mitigation Strategy: Hybrid Approach: Balance properties in rent-controlled and non-rent-controlled areas.

This approach allowed us to move quickly and take advantage of the immediate resale opportunity.

My approach is to apply for a conversion permit to convert the family to a single family residence, which is conforming.  

If this approach doesn't work, then I'll consider hiring a special process server to serve it.