All Forum Posts by: Braden Smith

Hi Prabal, welcome to the forum.

I’ve been active in both the New Orleans and Metairie markets for years, as a licensed broker and investor. A few things to keep in mind:

Market fundamentals: New Orleans is very block-by-block. Two streets over can mean a very different value, tenant pool, or insurance risk. You need hyper-local knowledge. Metairie (Jefferson Parish) is more suburban and stable, with stronger schools, lower crime, and generally more predictable rental demand than much of Orleans Parish. That said, prices are higher and cash-flow margins tend to be tighter.

Insurance costs: This is the biggest factor right now. Louisiana insurance premiums are among the highest in the nation, and they can easily kill a deal if you don’t budget properly. Always get quotes early and don’t just assume last year’s tax/insurance numbers are accurate.

Multifamily availability: In Orleans Parish, you’ll see a mix of doubles, fourplexes, and small apartment buildings, especially in older neighborhoods. In Metairie, duplexes exist, but true multifamily is less common; the area is more single-family focused. Investors often buy doubles in Orleans and then house-hack or rent out both sides.

Strategy fit: If you’re looking for appreciation and don’t mind more management complexity, certain parts of New Orleans can make sense. If you want stability and fewer headaches, Metairie is usually a safer bet, but the trade-off is thinner returns unless you can add value.

If you’d like, I can share some local contacts for insurance, property management, or lending who understand the unique challenges of this market.

Hope that helps give you a realistic picture before you dive in.

Welcome to BiggerPockets!

I’m a local real estate investor and broker licensed in both Louisiana and Mississippi with over a decade of experience in the business. I work with buyers, sellers, and investors across Greater New Orleans, and I’m always glad to connect with other locals.

Here are a few quick tips to get you started:

Start with the Ultimate Beginner’s Guide. It is free and will give you a solid foundation. Read it here: https://www.biggerpockets.com/guides/ultimate-real-estate-in...

Find local members. Connect with other investors in our area: Search members here

Join or attend local meetups. Check Meetup.com for real estate groups in New Orleans

The podcasts, blog, and forums are full of useful information, and setting keyword alerts will help you stay on top of topics that matter to you.

If you ever need insight on our market, introductions to trusted local contacts, or help evaluating a deal in the area, feel free to tag me here on BP.

Happy investing!

Welcome to BiggerPockets!

I’m a local real estate investor and broker licensed in both Louisiana and Mississippi with over a decade of experience in the business. I work with buyers, sellers, and investors across Greater New Orleans, and I’m always glad to connect with other locals.

Here are a few quick tips to get you started:

Start with the Ultimate Beginner’s Guide. It is free and will give you a solid foundation:  Read it here.

Find local members. Connect with other investors in our area:  Search members here.

Join or attend local meetups. Check Meetup.com for real estate groups in New Orleans.

The podcasts, blog, and forums are full of useful information, and setting keyword alerts will help you stay on top of topics that matter to you.

If you ever need insight on our market, introductions to trusted local contacts, or help evaluating a deal in the area, feel free to tag me here on BP.

Happy investing!

New Orleans is losing population. The city has shrunk by about 8% since 2020, and most metro parishes are also in decline.

Louisiana overall has been shrinking since 2021, dropping from 4.66 million to just under 4.6 million. There was a slight increase in 2024, but 2025 projections indicate that the decline is continuing.

But jobs are growing. The New Orleans metro area added over 5,000 jobs in the last year alone, with steady growth in healthcare, manufacturing, and government sectors. The statewide job market has now seen 49 straight months of year-over-year job gains.

In short: fewer people, more jobs. The population is drifting, especially from coastal and rural areas, but the job market is quietly heating up in urban hubs.

What’s Happening with Property Values in New Orleans?

New Orleans (City): Home prices are down about 3–4% over the past year. Inventory is high, homes are sitting longer, and buyers are gaining leverage.

Metro Area: Mixed results. Some parishes, like Jefferson and St. Charles, are seeing price increases, while others, like St. Tammany, are down. Overall metro prices are softening, and forecasts show possible 3–5% drops through late 2025.

Market Conditions: Slower sales, more listings, and more price cuts. Sellers must be realistic. Buyers have room to negotiate.

In short: Values are dipping, especially in the city. Some metro areas are holding, but the trend is cooling.

@Stephen Keighery Congrats! I remember back when you were first getting started and now you are crushing it! Awesome! 🙌

I read through this whole thread and didn't see anyone ask about calculating ARV and rehab numbers. Those two things seem to be the biggest challenge for those first starting out. Some info and tips on that would be helpful for those who are new and/or looking to get started wholesaling.

FEMA implemented Risk Rating 2.0 in 2021. This new rating system changed how FEMA determines flood premiums for the NFIP.

- Phase 1 (October 1, 2021)
Applied to new policies or existing policies that opted for early renewal under Risk Rating 2.0.
- Phase 2 (April 1, 2022)
Applied to all remaining existing policies, transitioning them to the Risk Rating 2.0 methodology upon renewal.

The new system replaced the decades-old approach to calculating flood insurance premiums, aiming to provide fairer and more accurate rates based on individual property risk.

Before Risk Rating 2.0, flood insurance premiums were mainly based on whether a property was inside or outside a designated flood zone and its elevation on a map. 

With Risk Rating 2.0, FEMA looks at several factors to assess a property's real flood risk.

Key Factors Considered
- Property Location: How close the property is to water sources (rivers, lakes, coasts).
- Flood Frequency: How often the area floods historically.
- Types of Floods: Includes heavy rainfall, storm surges, and river overflow.
- Elevation and Distance from Water: Higher and farther properties generally face lower risk.
- Rebuilding Costs: Higher-value homes may have higher premiums due to more expensive repairs.

What This Means for Homeowners
- Fairer Premiums: Properties with lower risk may see lower premiums, while higher-risk properties may face increased costs.
- Gradual Rate Increases: Increases are phased in over time for policyholders who see higher premiums, with annual caps on the rate hike.
- More Predictable Rates: Rates better reflect the real risk rather than just being based on a flood zone map.

Example Scenario (Simplified)
- Old System: A house in a designated flood zone pays $1,000 annually, regardless of its elevation or distance from the water.
- Risk Rating 2.0: That same house may now pay $1,200 if it's closer to the water and more vulnerable or $800 if it's higher up and better protected.

Flood zones still matter under Risk Rating 2.0, but their role has changed. Under the old system, flood zones primarily determined whether a property owner was required to carry flood insurance and significantly influenced the insurance rates. Now, under Risk Rating 2.0:

- Premium Calculation: Flood zones no longer directly impact the price of flood insurance. Rates are based on individual property characteristics like proximity to water, elevation, and risk factors.
- Insurance Requirement: Flood zones still matter for federal regulations. Properties in high-risk flood zones (Special Flood Hazard Areas, or SFHAs) must maintain flood insurance if they have a federally backed mortgage.

Flood zones still matter for:

- Mortgage Requirements: Lenders use flood zones to determine whether insurance is mandatory.
- Community Floodplain Management: Flood zone maps are essential for local governments to manage floodplain development and maintain eligibility for NFIP participation.
- Risk Awareness: Flood zone designations still help people understand general flood risks in their area.

Elevation still matters under Risk Rating 2.0, but its role is handled differently compared to the old system.

Under the old system, elevation certificates were often required to calculate insurance rates. They showed the property's elevation relative to the base flood elevation (BFE) for its flood zone.

With Risk Rating 2.0, FEMA now uses advanced technology and data models (like topography maps, elevation data, and geospatial technology) to automatically assess elevation for rate calculations.

How Elevation Impacts Rates Now
- Higher Elevation = Lower Risk: Properties located at a higher elevation are less likely to flood, which generally results in lower premiums.
- Lower Elevation = Higher Risk: Properties at lower elevations or in flood-prone areas typically face higher premiums.
- Natural vs. Man-Made Elevation: FEMA accounts for both natural elevation and protective features (like levees) in its calculations.

Do You Still Need an Elevation Certificate?
- Not Required for FEMA Pricing: Homeowners are no longer required to provide an elevation certificate to get flood insurance through the NFIP.
- Optional Benefit: If you believe an elevation certificate shows your property is at a lower risk than FEMA's assessment, you can submit one to potentially lower your premium.

Quote from @Alexander Stag:

Hello Mr. Leonard, I have not personally used the BP calculators, but I have seen the reports from them. Yes, my calculations are similar to the BP calculators but what I do different is I calculate the cap rate and NOI based on what they are currently renting for, and I compare it to what it can be renting for at the max. Those numbers I get for what it could be rented for is based on market reports in the area. I also calculate rental increases and break-even points, and I can do that for 5, 10, 30+ years.

Below I'm going to attach a quick calculation for an 8-plex that sold on 12/30/2024 in New Orleans. If there's a property you're looking at or want any information on, just send me the address and I can calculate anything you'd like. I can also calculate what a reasonable offer price should be. 

 Are you including capex, vacancy rate, repairs, and maintenance in your operating expenses?

 That is just the build cost and does not include the land cost. Construction costs are up over 40% in the last 4-5 years. 

I agree with the others who have commented. If you are struggling to make the numbers work, then it is likely not a deal to pursue.

Our biggest challenge in the New Orleans area is the cost of insurance. It is so high that it has become very difficult to find any property where it will have cash flow.

Have you gotten insurance quotes?

Welcome to BP!

You've come to the right place to learn anything and everything about real estate investing.

Be sure to check out the "Learn" tab at the top. Lots of great resources there. See here: https://www.biggerpockets.com/smarter

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If you have any questions I can answer, don't hesitate to reach out!

Good luck and happy investing!