Accountant · Knoxville, TN · Member since 2019 · 3 posts · 0 votes
I am a newbie and have not purchased my first property yet. I live in Tennessee, but would like to consider using the BRRRR method in my hometown of New Orleans. I was wondering if anyone has experience in this area and what your general thoughts are about investing there. I know it is a very ripe and plentiful rental market. Thanks for your help.
Hi @Monique M Hewling. I am both an investor and a licensed realtor in New Orleans. Our market is tough right now. We have tons of buyers and investors in the market making it very hard to find good deals. Anything that is on the MLS is usually priced too high and if it is priced well, it will have a dozen or more offers on it very quickly. If you'd like to hear more about the New Orleans market, I'd be happy to chat with you over the phone. Let me know...
@Braden Smith thanks very much for the info. I started looking in the MLS and immediately thought "these prices are not reasonable". This is the reason I wanted some inside information to see if considering investing there made sense. Thanks so much and let's stay in touch.
Monique, I am an investor in the New Orleans market and use this strategy. I do agree with Brandon though. It is very difficult to find a decent deal. The ones I have been successful with are off market or ones that have been sitting on the market for a very long time, then using that as a negotiation tool to get the properties for way under asking. If you are looking to BRRR you will almost certainly have to find a value add duplex, tri, quad or multifamily property to make your investment work from a cash flow standpoint.
One upside on the value add properties is that Louisiana does have a state tax credit program. If the property qualifies, you can get 20% back on qualified construction costs in the form of tax credits which can then be sold at around 85-89 cents on the dollar.
Thanks so much John for the tips. I was thinking it would be a challenge, but I know the market there so well I figured I could make it work. I’ll keep learning and looking.