Bogalusa Multi Buy and Hold

8 Replies

I have a lot of due diligence to do as an investment in Louisiana would be an out of state investment for me. However I do have family in the Bogalusa area. I’m curious to know how the buy and hold market is in this area, and if cash flowing deals are being found. What is the average rent per square foot etc. Thank you

@Todd Romero - I live in New Orleans now and have been up that way. You might know because of family, but they had some serious flooding a year ago. I have seen several properties that were slapped back together, and I feel proper mitigation wasn't done. Be sure to look for this while doing due diligence.

Also, I worry about small towns like this. If one big employer closes, it can devastate the town.

I'm with Andrew on this one... smaller towns while offering great cash flow potential can get crushed by movement of big employers so be sure to heavily research the economy of the town as a whole when looking in more rural areas... usually something like a regional commercial airport or a big hospital can elevate worries on topics like this as larger infrastructural investments from both companies and the government can alleviate some of the risk in theory. Just my 2 cents... If i'm looking to go long i need to know others are long on the area as well... so in that case i would look towards newer developments in the area and see if money is flowing in or out... in short buy a buncha local coffee and visit the local chamber and talk with a local commercial broker to really get a feel for the cities future. Always best to hedge your bets via knowledge imo. 

Bogalusa is a dying town. Lost half the population over the past 40 years. Main employer paper mill has cut back jobs and very likely to close down in the future. 

People there are quite poor, median household income of about $19,000. Schools have bad marks. 

Could consider purchasing in Covington, La. It's 20 minutes south. It's growing with some new businesses and corporate offices and many people commute to New Orleans. Close enough for your family to check on properties. 

Originally posted by @Pablo Mendez :

Bogalusa is a dying town. Lost half the population over the past 40 years. Main employer paper mill has cut back jobs and very likely to close down in the future. 

People there are quite poor, median household income of about $19,000. Schools have bad marks. 

Could consider purchasing in Covington, La. It's 20 minutes south. It's growing with some new businesses and corporate offices and many people commute to New Orleans. Close enough for your family to check on properties. 

Awesome info Pablo, this is exactly the info I need as I know nothing about Bogalusa. Right now I’m just kicking around ideas as I have family in the area. Again thank you for the very informative reply...

Great info from Pablo! 

I would additionally say to consider one of two parishes: St. Tammany (South of Bogalusa) or Tangipahoa Parish (North of it). Bogalusa is located in Washington Parish, which in my opinion is made up of a lot of small towns. Covington, Madisonville or Mandeville are great cities to invest in within the St. Tammany area that are close to your family. Hammond is a local state college town that many investors choose from Tangipahoa and shouldn't be too far of a drive.

Both Pablo and I wholesale in the St. Tammany parish area. Let us know how we can help!

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