Rental Property Investor · Wakefield, MA · Member since 2016 · 50 posts · 31 votes
I’m interested in any feedback anyone has on short term rentals in New Orleans. I’m looking to rent and then sublet (Airbnb). I currently have 17 in Boston and am looking to start in New Orleans. I’m looking into the commercial short term rental license. I know they’re currently discussing changing the regulations again so I’m not sure if anyone Airbnb’s there and has some advice! Any help is appreciated thanks!
Developer · New Orleans, LA · Member since 2015 · 1k+ posts · 898 votes
7y
@Cassandra Staffieri Your concept will not work in New Orleans. The city has halted all new short term rental permits, and all signs point to the fact that only the owner of the property that lives at the property will be allowed to get a short term rental permit when they resume (if they resume) issuing permits. Additionally, given the STR climate in New Orleans, I doubt you will find a landlord that will rent to you for the purpose of Airbnb.
Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
7y
@Luke Carl Ever feel like it’s groundhogs day around here??
Cassandra, save up a down payment and buy your own house and rent it out whether it’s long term or short term. The scenario you're referring to is in no way an investment. It's a job done from a distance. It's no better than working at McDonald's or Walmart, in fact it's probably worse. You are going to encounter alot of unpleasant things happen in a market like New Orleans.
Its a good question but you’ve got a long way to go. Keep reading lots of books!
Contractor · Knoxville, TN · Member since 2018 · 77 posts · 44 votes
7y
Aren't you missing out on some things in this scenario? IE. Appreciation, depreciation, principle paydown?
Not having access to these (which the owner in the scenario DOES enjoy) leaves you with cashflow - but with very little in the way of knobs, dials and levers with which to manipulate the factors that influence cashflow...
You said you 'had 17' in boston... do you mean you RENT 17 properties in Boston, then sublet them on AirBNB? I'd like to here more about how that's working out for you.
Rental Property Investor · Wakefield, MA · Member since 2016 · 50 posts · 31 votes
7y
@Paul Sandhu @Paul Sandhu ... I do have my own house. I bought a two family in May in Wakefield MA. Not a hot market for Airbnb’s. It is an investment to rent and then Airbnb it.
I asked for advice from people who have Airbnb’s in New Orleans.
For me, it has been EXTREMELY PROFITABLE renting in Boston and then putting them on Airbnb. I profit around $1,000 per week between April-October on each property I have.
With that money I have been able to buy a two family and re invest in other rentals. So for me, renting properties and then airbnb’ing them is fast money, whIch I am looking for rIght at thIs moment. I plan to buy a condo in Myrtle Beach next year and also Airbnb’ing that. So thanks anyways.
Rental Property Investor · Wakefield, MA · Member since 2016 · 50 posts · 31 votes
7y
@Richard Lee .. it’s simple. I profit about $1000 per week per property between April-October. Sometimes more. November usually around $500 profit per week per property. Winter months you’re looking to break even. It’s working out fantastic. This is why I want to go to New Orleans.
Rental Property Investor · Wakefield, MA · Member since 2016 · 50 posts · 31 votes
7y
I’d rather get advice from people who either have Airbnb’s in New Orleans or know the Airbnb market down there. I know about Airbnb’s, I know about renting vs. owning etc. ... I want to know about New Orleans. Thanks.
Rental Property Investor · La Place, LA · Member since 2014 · 109 posts · 82 votes
7y
@Cassandra Staffieri looks like the city is very much against the idea of STR's. From what I've heard they have stopped issuing new licenses and have been enforcing the rules against people operating without a license.
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
7y
@Cassandra Staffieri If things are so great in Boston why bother with a town that’s a thousand miles away??
I agree with @Paul Sandhu and @Richard Lee. Focus on buying things. To own. It’s only a matter of time before the Boston gig is washed up.
Rental Property Investor · Wakefield, MA · Member since 2016 · 50 posts · 31 votes
7y
@Lucas Carl laws were passed and go into effect August 2019. I’m not wondering if I should buy or rent. I’m wondering what people’s thoughts are who are already there. I know the renting and the buying game. Thanks though.
I would be patient and stay tuned if I were you. Not friendly to investors or commmercial type permits. Seems to me they’ll continue to allow STRs but the regulations will target to only allow locals that want to subsidize their mortgage. With that being said. You might be able to find some clever ways on paper to make it happen. We’ll see when they allow permits to be sold again. They’re currently frozen.
In addition, before buying my STR units, I contacted a lot of landlords to try to do the same sublet situation you're referring to. Good luck finding anyone that will allow you to do it but it's worth a shot I suppose. You'd prob have to give them a % of rev. The permit you apply for will require a written consent from property owner.
Humbolt Tennessee. That 220 million dollar project by Tyson Foods could have been about 10 miles from my house. My town was in the running. A lot of people will need a place to stay during the construction and startup phase.
Rental Property Investor · Wakefield, MA · Member since 2016 · 50 posts · 31 votes
7y
@Paul Sandhu .. BP is a place to ask questions and get advice, not to get mocked. Every single time a person posts about an Airbnb or short term rental, you have to put some ignorant remark. I’m not looking for advice or rude remarks from someone who has some short term rentals in Kansas.
Developer · New Orleans, LA · Member since 2015 · 1k+ posts · 898 votes
7y
@Cassandra Staffieri Your concept will not work in New Orleans. The city has halted all new short term rental permits, and all signs point to the fact that only the owner of the property that lives at the property will be allowed to get a short term rental permit when they resume (if they resume) issuing permits. Additionally, given the STR climate in New Orleans, I doubt you will find a landlord that will rent to you for the purpose of Airbnb.
Real Estate Agent · New Orleans, LA · Member since 2015 · 146 posts · 127 votes
7y
@Cassandra Staffieri I agree with others that have stated that this business plan will likely not work on NOLA right now unless you try to go under the radar and illegally. I'm curious how you handle liability insurance in Boston. Do you obtain it or does the owner carry additional insurance? And also, do all of the landlords know that you sublet their investment properties? Do you buy furniture for everything or do you rent it? This model fascinates me. Thx.
Rental Property Investor · Katy, TX · Member since 2013 · 417 posts · 171 votes
7y
@Paul Sandhu. The tone of your initial post to this thread was very condescending and rude, frankly. @Cassandra Staffieri seemed to have been posing a serious question seeking the collective wisdom of the BP Community, which is an awesome thing. I’m sure that you have some great experience and have some great advice to give. The unfortunate thing is that much of that will fall on deaf ears when you post things with that tone. Had to get that off my chest.
Rental Property Investor · Wakefield, MA · Member since 2016 · 50 posts · 31 votes
7y
@Greg Jeanfreau @Greg Jeanfreau - I started an LLC. leases are signed with my company name. Yes. all of the landlords know. we rent from 4 different landlords.
I furnished the first 9 apartments & the furniture is fully paid off. I recently signed leases on 8 fully furnished apartments.
The way I initially started Airbnb is because of my cleaning company. We had Airbnb customers and I learned everything through them. I saw how much money they were making and how fast they grew.
I’ve been getting comments to buy properties. I just want to explain something. I came from nothing. I started a successful and profitable cleaning business from ground zero. I then saved enough money and found a realtor who helped me find landlords who would let me Airbnb. I started with renting 1 apartment and 2 months later, I had another. 2 years later, I have 17. I was able to put a down payment on a 2 family with money saved from the profit I have made on Airbnb’s that I RENT. This whole Boston Airbnb trend is gone August 2019 so yes I’m making as much money as possible before it ends. And yes I plan to keep renting where it’s possible in other states so this is why I’m asking the BP community for their advice.
I love what I do and I love the cash flow that is made from renting apartments and then Airbnbing them.
Will I buy more property? Yes. But I can’t buy 24 Airbnb units like some people can in states such as Kansas for example. Boston property is extremely expensive. What I have done in the last 2 years has been extremely profitable and proven to work.
Rental Property Investor · Campbell, CA · Member since 2017 · 419 posts · 499 votes
7y
I think the overall trend is what you’re doing isn’t sustainable from a simple regulation perspective. Many of the larger metro areas are moving in this direction and it looks like as of Aug 2019 you’re done. That’s a lot of work to simply be regulated out of business.
I have no experience with NOLA so no help there.
I have a lot of experience with STRs in general. It looks like the majority of people here have offered the opinion of “stay away from NOLA” so you should be asking what other areas are short term friendly to avoid this happening again.
There ARE areas that embrace STRs. A few that come to mind: Correctly zones areas in Hawaii, areas of TN, and the vast number of condos along the Gulf of Mexico. Any of these areas would theoretically work with your business model if you can find owners that would allow you to sublease. I don’t expect a sustainable reproduction of what you’ve accomplished in any major metros that I know of currently.
Even if you find one today, you’re likely to have this happen again down the road.
My advice: it sounds like you’ve built a nice little nest egg. Find a market you like and BUY something that will provide decent returns and grow organically. @Lucas Carl can point you to cute little cabins near the Smokey Mountains that only require 10-20% down (30-40k) and will net you $1000 a month in addition to the mortgage pay down and equity build. Start with 1, then 2, and before you know it you’ll have a dozen of them.
People here on BP are here to help. You just get a lot of strong personalities like @Paul Sandhu but they keep it light and entertaining. This stuff is pretty dry as it is...
Minneapolis, MN · Member since 2018 · 15 posts · 15 votes
7y
@Cassandra Staffieri I think what you have accomplished already is amazing and I like the way you're attempting to grow. Can I ask you, or anyone else reading this, who within City Government do you contact to find out the regulations for STR?
Rental Property Investor · Wakefield, MA · Member since 2016 · 50 posts · 31 votes
7y
@John Lambert Thank you! I spoke to the Office Assistant of safety and permits in NO earlier this afternoon. NO has a specific department for short term rentals. In Boston, you’d contact the City Clerk Dept. to ask.
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
7y
@Mike V. Made some excellent points.
This thread is starting to kill me. What you are doing is not investing. And if you find another market to do it in again, the same thing will happen, again. Why in the world would anyone hire you instead of Evovle or Vacasa?
3 years ago what you are doing was possible. Today it is not.
Frankly the fact that you didn’t bother to just google “Short term rental New Orleans” instead of posting makes no sense to me