I am fairly new to BP so if this post is in the wrong place feel free to let me know.
Currently, I am looking into buying a duplex in New Orleans and living in one side. However, typically when I run the numbers on duplexes I am interested in, I am cash flowing negatively by around $300-500. Now, I know this should be the case since expenses are fairly high in New Orleans (I believe; correct me if I'm wrong), but I am just curious to see if anyone has been able to househack in New Orleans with a multifamily (can be triplex or fourplex too but I feel like those are hard to come by) and either break even or positively cashflow.
Any insight would be greatly appreciated.
I have not but i have 3 duplexes in NOLA. What area are you in and whats purchase price?
@Shane Jeanfreau , what neighborhood(s) in your opinion are the best in NOLA? My partner and I are looking to move there in the next few years. And how is the rental market? We plan to house hack. Curious what typical rents are for a 3 bedroom.
@Robert Power If you are thinking you can buy a duplex and have one unit rent cover all of the expenses, that will not happen (except in very rare cases in very marginal/bad areas) in New Orleans. What you need to look for is if the property will cash flow with both units rented.
My first property was a duplex, where I lived in one unit and rented out the other to offset a lot of my expenses.
There are areas in NOLA where if might be difficult to cash flow with both units rented, given the prices of real estate in the city. These are generally the high cost areas.
While you might be able to find a triplex or a 4-plex that can cover all of the expenses with one unit unrented (i.e. owner occupied), there are not a lot of these in decent parts of the city, and when they do come up they are generally pretty pricey.
@Mike Wood is spot on. It is generally not possible to live in one unit of a double/duplex and have the rent from the other side cover the expenses. If you buy one that needs repairs/renovations you can get it to where the rent will cover a large portion of the note and expenses though.
It is possible with a tri-plex or a 4-plex, but they are hard to come by. The demand for multifamily properties in our market has been huge in recent years.
Thank you everyone for the advice.
@Shane Jeanfreau I am looking at the uptown areas (70115 and 70118) but I am not opposed to other places as long as they are relatively safe. Also, my max purchase price would be $250k.
@Mike Wood I agree with you completely. I was trying to find a way to break even but the only way that would work was with a triplex/fourplex which are usually in not so good areas. I don't mind paying essentially the mortgage note and having my expenses covered seeing as this is financially better than renting. I will just need a stellar deal to get the cashflow I talked about in my original post.
@Braden Smith thanks for the tip.
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