All Forum Posts by: Braden Smith

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

Good luck and happy investing!

 I'd be happy to hop on a phone call with you to run through it. Basically, it just depends on the comps in the area and the property values in that area. Every area has a max or cap, and you don't want to go over that. It is never good to be the biggest or most expensive house in a neighborhood.

Contractors are a dime a dozen, but good contractors are hard to come by. There are also many people in the New Orleans area that call themselves a contractor but in actuality, they are not licensed. Your best bet is getting a solid referral from someone that has actually used a particular contractor and had a good experience with them. As mentioned above by @Taylor Stow, knowing a bit more about the project would help to determine the best fit for you. Please provide more details about the project and from there I can refer an appropriate contractor for your needs.

@Vincent Hawkes I am a local real estate investor and a licensed broker in both LA and MS. I'd be happy to schedule a phone call with you to discuss things and determine if we would be a good fit to work together. Let me know! 

In very simplified terms, to determine the feasibility of a new construction project you need to do the following:

1. Determine if the area can support new construction. Not all areas can. 

2. If the area can support new construction, determine the best style, size, and type of new build for that area.

3. Determine the cost of construction (hiring a contractor in the GNO area is going to start around $165-175/sqft to build) and be sure to include all holding costs, as well as interest in the loan. (The typical commercial loans I use are at 9.5% right now so be prepared for that.)

4. Determine the most likely sales price of the build (factor in the cost of the land also) and include all selling costs to arrive at your net profit and ROI.

I don't like condos for rentals for a few reasons, as follows:

1.  As mentioned above, they typically do not appreciate as much as other properties.

2. The condo fees tend to go up every year and can sometimes jump up substantially from one year to the next.

3. The condo association can levy a special assessment for capex at any time, which can destroy cash flow.

4. As a condo owner, you have limited control over the overall management and decision-making processes of the building. This lack of control can be a disadvantage if you disagree with certain decisions made by the condo board.

You can find more info here:  RESILIENCE SOFT SECOND (HOMEBUYERS)

LHC’s Resilience Soft Second Program was created for the 51 parishes in Louisiana impacted by the 2016 floods. The program offers first-time homebuyers a total of $60,000: a second mortgage of 20 percent of the home’s purchase price up to $55,000, plus up to $5,000 in closing costs. If you use the home as your primary residence for 10 years, the soft second loan of 20 percent is fully forgivable.

Borrower requirements:

- Must be a first-time homebuyer (or haven’t owned a home in the past three years); a single parent who’s only owned a home with a former spouse while married; or a displaced homemaker who’s only owned a home with a spouse

- 640 minimum credit score

- Maximum 48 percent debt-to-income (DTI) ratio

- Must complete homebuyer education course

- Must meet LHC income limits (be at or below 80 percent of AMI)

Property requirements:

- Must be a single-family home, condo or townhome

- Must be in one of 51 participating parishes in Louisiana

- Must not be in a flood zone

- Must be a primary residence

- Must not exceed $314,827

The new STR rules that were just implemented are even more restrictive than the previous rules.

There is currently an ordinance pending before the Council which would sunset all existing RSTR permits on August 31, 2023. Operators and/or owners should not book stays after that without the understanding that applicants unable to secure an NSTR permit by that date will not be permitted to operate without an NSTR permit and any booked stays would have to be canceled if a permit cannot be secured.

See here:  Changes to Short Term Rental Laws Enacted on March 23, 2023

The insurance market in Louisiana is an absolute mess right now. The state has lost almost two dozen insurance carriers so there are not many left to choose from at this time. If you're willing to take on the additional risk you can raise deductibles and reduce coverage for now. We may have some additional carriers soon. 

See the following links:  

Louisiana homeowners could see lower property insurance rates next month

Donelon Announces Nine Companies Applied for Over $60M in Insure Louisiana Incentive Program Funding

And check this out:  Homeowners Rate Comparison Guide An Online Tool to Help Shop Your Rate