My wife and i are moving to Baton Rouge in a few months. It seems like rental prices are great for the area, but I see a lot of flips selling for less than 200k.. with the price of material right now these have to be acquired for next to nothing to make a profit. Does anyone know or recommend fix and flip in the area or just brrrr them?
We are entering into a magnificent new era, but the transition is going to be painful for some I suspect.
Well said Brandon Johnson.
Thanks for the insight. Can you elaborate? If the craziness is about to intensify wouldn't you want to lock up properties before they go even higher and secure your cash?
@Tyler Hallman by the craziness intensifying I do not mean just in the real estate markets. I'm referring to global economies and the current financial system. Obviously you've heard how difficult a time home builders are having due to prices of material skyrocketing. They are having to explain to their customers how their lumber budget suddenly jumped from $25k to $100k and customers are not happy and many contractors and builders are losing money because of this. This is just one example, but is evidence of a trend in a US dollar being weakened. As I mentioned, a savvy investor can do well in any market, but my personal choice is to sit back and be an observer during this time.
That being said, I am a huge proponent of owning tangible assets such as physical precious metals and certainly land and property. If you find a deal that works for you and you have the means to acquire it, go for it!
It's been a tough year to be a landlord, but Louisiana still has some of the most favorable landlord/tenant laws from the landlord perspective.
Hi Tyler, I can't speak to the Baton Rouge market as I am down the bayou on the Northshore but I am a fan of all of us buying common sense deals with multiple exit strategies during this time. Great deals are still to be had! I would be mindful of what is going on but keep in mind that demand is still there for both flips and rentals. How are we staying within a common sense approach? Buying with enough wiggle room for longer timelines and increased budgets. Being cautious of major rehabs. Keeping the price points in the median rental and purchase range. Unless a luxury property comes to us at pennies on the dollar, we are staying away from those unless there are less risk factors such as rental arbitrage or owner financing. Hope this helps!