Hi @Destiny Prince ,
That deal looks decent. I say go for it unless you have any better options.
Thanks @Doug Shapiro . It would be my first deal, so I'm really nervous and excited all at the same time. Plus, that's assuming they accept the offer. But there is no way window units are going to make it much longer in this Louisiana heat. I would have central air/heating repaired.
@Destiny Prince Personally, I prefer to allocate vacancy of 8%, which equated to roughly one month a year that the unit is vacant. Also, I would definitely double check your property taxes. Not sure what is in your area, but over here in Florida the taxes are approximately 2% a year of the value of the property. Thus, your taxes may be a bit more than $70 a month.
Looks like a great deal though! If the ARV is truly 130k, you could BRRR this property and pull out your initial capital investment of $35k. Not sure what your strategy is, but definitely something to keep in mind!
Hi @Destiny Prince . I am both an investor and a realtor in the New Orleans area. It is hard for me to give much advice without knowing the property address, number of bedrooms and bathrooms and the approximate square footage. If you'd like some help you can PM me with additional info and I can give you some advice. I own rental property in Kenner and I am very familiar with the New Orleans area real estate market.
@Destiny Prince Assuming the property is in Kenner, I doubt that any property that you can purchase for $80k will rent for $1300 per month, unless the house is in terrible shape. I would focus attention on what the actual rent would be.
I think your taxes and insurance are way low.
thanks guys.... all very helpful info
no way of knowing if that rent number is accurate without size and number of bedrooms/baths and the general area town.
regarding the taxes - as I know LA has the lowest taxes in the country. I've used this site for quick reference when I'm doing deal research. -->http://www.tax-rates.org/taxtables/property-tax-by...
according to this site @Destiny Prince your taxes seem OK. However, based on some other threads on NO insurance, your numbers are way low. New Orleans owners of multiple properties have quoted $300-400 month for insurance (NSC, Flood Insurance, etc,). I would double check that.
Anyone else can confirm these crazy high insurance prices?
Orleans parish has the highest taxes in the state. See here: https://www.nola.com/expo/news/erry-2018/06/166050...
The OP tax assessor site has a tax estimator tool. See here: http://www.qpublic.net/la/orleans/est.php
Insurance is also higher in Orleans Parish, and the flood zone and elevation of the property make a big difference in the cost of the flood insurance.
I've got a couple great insurance providers I can recommend.
This deal was in Jefferson Parish, but I decided to pass on it. Thanks again for all the feedback. It will be helpful for the next analysis.