All Forum Posts by: Braden Smith

You need to get the rent rolls or a T12 along with all the income and expense info so that you can calculate the CAP rate. See the following for more info:

3 Metrics Crucial for Finding Amazing Apartment Building Deals

Cap Rate: A Must-Have Number for Rental and Commercial Investors

How to Calculate Cap Rate (& Where Many People Get It Wrong)

How to Calculate and Identify a Good Cap Rate

Cap Rate and Cash-on-Cash Return: A Definitive Guide

How to Know What Cap Rate to Shoot For on Any Given Rental Property

HI @A.J. Albritton. I'm a local real estate investor and co-owner of a local real estate brokerage. I agree with both @Stephen Keighery and @James Babin above. 

In the current market environment it is rather difficult to get any property under the list price unless it needs a significant amount of work. Most everything is selling for list price or above. The stats from the MLS show that the median percent of list price homes are selling for right now is 99.4% and that keeps trending up.

Buyer demand is sky high right now, with 25-30% more buyers than normal in the market with the number of available homes for sale being much lower than normal. The current stats from the MLS show the number of homes for sale is down 41.8%. See below:

Our months of supply, which is the metric we use to judge available inventory, is currently at just 2.1 months, which means if no new listings were to hit the market we would run out of listings in just barely over 2 months. A balanced market is considered 6 months of supply, so we are far below that. The last time our months of supply was this low was back in 2006 after Katrina when we were in the middle of trying to recover from one of the most devastating natural disasters to ever hit New Orleans.

It is a tough market for buyers without a doubt, but it is not impossible to find a home to buy. However, finding a "good deal" is extremely difficult in this market and typically will only happen when buying a property that is in need of a substantial amount of work. There are just too many buyers out there willing to pay top dollar right now. The properties that are in good shape, or somewhat renovated and/or renovated are flying off the shelves and oftentimes in a multiple offer situation. The median days on market is down to just 17 days, which is down 46.9%! It is kind of crazy, but it is worse in some parts of the country. I know lots of other realtors and investors across the country and some are in markets with as little as 0.4 months of supply, which is just absolutely insane!

I'd be happy to to jump on a call with you to discuss the current market conditions in the New Orleans area. Hit me up anytime...

Reach out to Anthony Quillen with Quillen Construction Group. He works with investors and can do it all. See here:  https://www.qcgnola.com/

Building new is cost prohibitive right now. Building materials are up across the board and lumber is sky high. 

See these links:  

Record Numbers of Builders Report Material Shortages

Framing Lumber Prices

Visualizing the Recent Explosion in Lumber Prices

I agree with @Stephen Keighery. Get it under contract and then have title look into it for you.

Why is NOREIA still not doing in person meetings? Everything is open. The governor lifted the mask mandate.

You can mail them, call them, door knock, etc., whatever you feel comfortable with. Good luck! 

As of December 2019, there are currently 3 different licenses for renting out properties for the short term on various platforms such as VRBO.

The Type A (Accessory) License allows a permanent resident to rent out spare rooms in their property, or they rent half of a double family unit.

• Up to 3 bedrooms can be rented out (up to 6 guests)
• Must show proof of homestead exemption
• Must get approval from Safety and Permits

The Type C (Commercial) License allows property owners to operate their short term property as a commercial business in nonresidential districts.

• Can rent out up to 5 rooms for up to 10 occupants
• Must get approval from Safety and Permits
• Must obtain a change of use permit
• Must obtain permitted use in most the nonresidential districts
• At least 1 parking space per 2 guestrooms and at 1 bicycle space per dwelling (25% of bicycle spaces must be long term spaces of the owner

The Type T (Temporary) License allows property owners to rent out the entire dwelling as a short-term rental for up to 90 days.

• Can rent up to 5 bedrooms (up to 10 guests)
• Must get approval from Safety and Permits
• Obtain a temporary use permit
• Short term renting can be operated by the renter, but with the owner’s consent
• The owner does not need to be present

Since the Type T license has a 90 day duration period, the 90 days can be determined in certain periods or a continuous 90 day period. If the applicant decides to account for the 90 days in separate periods, a new license will have to be filed or approved.

STEPS TO DETERMINING THE LICENSE A PROPERTY NEEDS

Navigate to the City of New Orleans Property Viewer and enter your address. If you have a commercially zoned property, you are limited to a Type C license. If you have a residentially zoned property, you may choose between Type A and Type T licenses.

If in a residential zone, the next step is to determine if there is a homestead exemption on the property. Homestead exemption allows property owners to reduce the property taxes of the home they live in the majority of the time.

If the property does not qualify for a homestead exemption, then you’re limited to a Type T license. If you do qualify for a homestead exemption, then a Type A or Type T license can be chosen.

Fees for Short Term Rental Licenses

• Type A (Accessory) Short Term Rental License – $200
• Type T (Temporary) Short Term Rental License – $150 (could be $50 if qualified for homestead exemption)
• Type C (Commercial) Short Term Rental License – $500

If a Type T applicant decides to have specific periods for the 90 days, they will incur more costs by having to file more than once annually.

See the following links for more information:  

https://www.nola.gov/short-ter...

https://www.nola.gov/short-ter...

Thanks for the shoutout @Stephen Keighery! 

@Richard Solaski happy to chat anytime! 

Once you make your list, you will need to look up each address on the tax assessor website for the county they are located in. On the assessor site you will be able to find the owner(s) name and the proper mailing address. 

See here:  https://www.biggerpockets.com/...

@Adam Broussard I agree with @Andrea E. You need to speak with the consultant and I would also contact the state contractor board. In addition, contact the BBB and file a complaint.

Is this the guys website? https://www.cajuncupboards.com...