Is NOLA worth the investment going into 2024?

Question

Ive scrolled thru countless forums, thru BP blogs and even tik toked as close to this question..

I’m here wanting to ask is New Orleans a year prior to the Super Bowl worth the investment?

I’m looking for a 2-4 unit property around the country and I’ve circled back to NOLA due to the inexpensive multifamily properties that is available

a few questions…

Is this market saturated? Is rent prices reasonable?

Is it hard to find renters?

Greg Jeanfreau · Answer

@Vante Jay As with juat about everywhere else in the country The New Orleans market has many many active investors. It is still competitive , but as with all markets there are always deals to be found. I personally have not had much of a hard time finding tenants for my apartments. Mine are all in pretty good neighborhoods that are very walkable. That being said, In order to successfully invest in the city of New Orleans you must have a fairly deep understanding of the city. I would urge great caution when choosing neighborhoods and even blocks to invest in as things can go uphill or downhill very quickly. There are multi-million dollar houses that you can walk just a couple short blocks and watch the neighborhood get pretty rough and potentially dangerous. I still find the rents to be strong with a fairly decent tenant pool to choose from. Louisiana is also a very landlord friendly state and that doesn't hurt either.

Braden Smith · Answer

I have been looking at the rental data in New Orleans lately and it seems like there may be a surplus of rentals available, most likely due to the STR rules causing people to switch to regular long-term rentals. I also know a few people who have been having a hard time finding tenants lately.

Braden Smith · Answer

Agreed, and in many cases, insurance is destroying cash flow if not pushing it into negative territory.

Garry Loper · Answer

Well....should you invest in a city where the people elected a woman with foreclosures, liens, judgements, garnishments, ethical violations from the state ethics board, misused a city credit card, went three years arrears on her federal taxes all while yelling for other people to pay " their fair share, " left skeletonized dead bodies hanging over Canal St for months on end covered only by a tarp until the wind blew it off to reveal to our horror her blatant disrespect for human dignity?

The people elected her twice; the city floods in a medium rain and boil water notices are frequent due to crumbling infrastructure....but they did find enough money for festive lights for the bridge for the Superbowl. But park anywhere near the Superdome and your car's windows will be smashed or you will be carjacked and possibly killed. The elected DA and his mama were carjacked returning from church. I pay 4000 a year in taxes for a brand new single family home I can only collect 1100 a month on....4 months of rent to just cover property taxes, insurance is another 4000k.... that's 8 months gone.

What you think?

Zachary Ware · Answer

I have to second that this market requires a great understanding of the neighbors and even streets. I recently thought I found a great duplex but when a local agent toured the property for me, they didn't even feel safe which lead us to believe finding the right tenants would be a challenge.

Beau Guidry · Answer

I agree with all of the above and will add the exorbitant insurance costs are squeezing rental profits at the moment.

Is NOLA worth the investment going into 2024?

Is NOLA worth the investment going into 2024?

Most Popular Reply

8 Replies