All Forum Posts by: Corey Gregg

I have a duplex in Mid-City, New Orleans.  It is the only property that I own, and my reason for buying it was because I wanted to have the freedom of renting combined with an ok investment--and that's what has happened.  I lived in one side for a year then moved and now both sides are rented out with a property management company.  Insurance has been more than I expected.  Rent has been a little less than I expected, but I believe that this was due to a temporary glut of long-term rentals when the city made short-term rentals illegal last year in most situations.  I anticipate rent to increase over time.

Overall, it's not a bad investment but not stellar, but it was move-in ready, no renovations needed, and essentially pays for itself while it appreciates.  If I were to do it again (and I might), I would focus on a property that can be bought more cheaply due to needing rehab, and potentially up to a four-plex.  Make sure you know the safety and quality of the neighborhood and even block in New Orleans to ensure the rents will be what you expect.  Uptown is generally safe everywhere, but the rest of the city can be block-by-block.  Uptown seems to have higher price:rent ratio, but the neighborhoods are more stable there.

Thank you very much!

Hello, I own a duplex and I currently live in one side and rent out the other, although I intend to move before the end of this year when I will rent out both sides for LTRs.  The air conditioner and heating system on each side is aging, although they are probably about five years from needing to be replaced.  I would like to replace them when they break with a heat pump system, which would be better for the environment and also might qualify for tax rebates.

My question is whether replacing my side's HVAC now--while I am still living here with a homestead exemption--would change the tax breaks available to me; and whether any tax incentives to replace the HVAC with a heat pump exists for landlords.

I am aware of a $2,000 federal tax credit for homeowners, but if anyone knows any Louisiana specific tax credits that would be great information as well!  Thank you!

@James Babin thanks that’s what I’ve been finding too. Looks like I’ll be finding something less than the limit or waiting to save for a bigger down payment.

@Nicholas Covington thank you very much!

Hi, I am looking to buy a duplex in New Orleans, LA for about 400k-700k. I would put down 5% and then pay enough to get to 20% while living there within a year or two, then refinance to get rid of PMI and to cash flow better, when I will move out and rent out both sides. The reason I wouldn't put down 20% now is because I don't have the cash, but will make it soon from my day job, which is stable. I am being told that this may be too expensive for a loan with less than 20%. Is this accurate? Are there loans that would allow me to do this?

Thank you.

@Mike Wood thank you very much for this information!

Wow thanks everyone.  Sounds like I should be estimating about $100/unit to be conservative, but ideally finding a place with separate meters so that the tenants can pay?

does anyone know if it’s possible to ask the city to separate the meters in a duplex without separate meters?

Hello!  I am looking to buy a duplex in New Orleans--ideally I can house hack for about a year then move out and it will be a cash-flowing rental property.  My problem is that I don't know what to estimate for water expenses, and this variance can turn a potential cash-flow positive property into a cash-flow negative property.

I have rented in the city for years, but only recently did I have to start paying for my own water.  The first bill was shocking to me (about $300 per month and billed after 4 months in the apartment, which is a 2bd/2br).  I have appealed this with NOSWB and they are evaluating it.

2 questions:
1) What is an expected water bill for a 2/2 apartment in a duplex, triplex, or fourplex?
2) Is it common to find multifamily properties with split water meters, so that the tenant pays for water?  If so, this would make my math much easier.

Thank you everyone.

EDIT: I realized that this thread was old after posting, but I'll leave it here in case any one else finds it useful.

I just finished residency in New Orleans (moved from a different state), and I have rented since I moved here, but I am considering buying a multifamily property now.

New Orleans is really a block by block city.  You can be in a good neighborhood and just a few blocks over would be a worse neighborhood.  Where to live depends upon their personalities, of course, but I would recommend--for a couple working at those two hospital in the city, to live either Uptown, the Garden District, the Lower Garden District, the Irish Channel, Mid-City, or Bayou St. John.  Further east into the Marigny might be a hassle to get to Ochsner, further west (Metairie) is definitely do-able (I know many LSU residents that did this), but I personally think that it would be a hassle to get to LSU's hospitals from Metairie unless they live very close to I-10.  I don't like commuting more than 15 minutes or so and I'm not a fan of the suburbs (much of Metairie).  If they want to live in high rise apartments with amenities, then the Central Business District is where to do that, but it sounds like they might want to buy a dublex, so I'd recommend those other neighborhoods.

As far as individual streets within neighborhoods, I look for neighborhoods with lots of trees and people walking around.  Between St. Charles and the River essentially from Audubon Park to the edge of the Central Business District is generally walkable and liveable.  The closer you get to Magazine street the better, in my opinion.  Around Mid-city and Bayou St. John, the best areas are very close to the Bayou and/or City Park in Bayou St. John, or on or very close to what's now called the Norman C Francis Parkway.

Personally, I rented a place for 6 months at the beginning of residency in the Lower Garden District, then moved a few blocks away to a less expensive apartment for the remainder of residency.  If they want to buy a multifamily, make sure they run the numbers well and consider a property manager even if they're living in one apartment because residency will be very busy for them and they won't want the hassle.