Buy and hold rental property in Baton Rouge?

9 Replies

Anyone having massive success on buy and hold real estate near LSU? It looks like since there is new growth on Burbank Dr. condos in the area are losing value, and so is the median rent on 3/2 and 2/2’s. Every analysis that I’ve made so far on each of the analyzed properties is showing low/negative cash flow. I know this area extremely well since I’ve been working here every day for the past several years.

I think there’s still a market with condos near LSU. The new development certainly saturated the market, but it’s considered Class “A” and is pretty pricey.

I’ve analyzed a few condos around LSU that cash flowed positive, but not quite as much as I require to pull the trigger. I usually throw out the condos near Brightside and Tigerland, though, as those areas are going to attract the rowdiest of students. 

@Garrett Ellison thanks for your input, same here. I’m not sure what the market will do in the next few years in this area, but I’m determined to buy based on cash flow, not potential equity ALTHOUGH it looks like it’ll be quite lucrative when the new construction is done. Do you have any thoughts on this?

@Sherman Dunn I agree. Don’t worry about guessing future markets. Cash Flow is king, and will help to ensure a stable investment.

I like condos more than the average investor, but I agree with one major criticism: it's really easy for developers to swoop in build more and more condos, as opposed to SFH, where there are only so many, and you own the land underneath the property. SFHs appreciate at a much much faster rate than condos for this reason.

But again, it’s not an appreciation game- it’s a cash flow game!

@Sherman Dunn

Well investing in LSU area is all about timing and cash flow I would say. Buy in the spring or in between semesters.

That is where the demand is higher and you have better chance getting good rent. As condo value is going down you can still find some good deals but do your homework before pulling the trigger!

As a newby to this site, I just came across this thread as I searched a particular keyword.  

Recently, I was so eager to buy something, that I pulled the trigger on a townhome off Brightside.  I must say, had I known what I learned over the past couple of weeks from listening to the BP podcasts, I most likely wouldn't have bought it.  This is good stuff.