Just about any investor on the lookout for a promising New Orleans rental
property has a number of assumed criteria in mind—often arrived at without bothering
to sit down to list them. Remember, this is already a successful individual, usually
with ample business experience—and always with the financial acumen to be able
to make a substantial investment. For them, creating a written decision matrix really
isn’t necessary.
Still, there’s a lot of literature on the
web offering opinions on what are the most commonly agreed-upon factors for
choosing a rental property. Quite a few “Top 10”s. Going over them, it turns
out that some are only slight variations on a single theme, so I’ve boiled them
down to a “Top Six.”
The first one is barely ever mentioned. It’s
this:
1.
Most
investors have predetermined the price range that his or her New Orleans Area rental
property must fall into, but that can turn out to be a false step. If the goal
is to garner the maximum return, it’s possible that some humbly-priced New
Orleans Area rental properties can actually turn a greater annual profit—even
in absolute dollars—than some higher-end homes (particularly those that suffer
extended periods without suitable higher-end tenants). So Number 1 is SET YOUR INVESTMENT GOAL. Cash flow
return can be a very different goal than long term property appreciation.
2.
LOCATION LOCATION LOCATION. This is the one that combines a half dozen
factors, variously listed as Neighborhood, Proximity to Jobs, Amenities (parks,
malls, gyms, movie theaters, public transportation hubs, etc.), Crime, Schools,
and even Property Taxes. This factor might be chosen for convenience, as when a
rental property investor wishes to be able to supervise the property; or for an
expectation of value appreciation in a New Orleans area which is gaining
popularity. As everyone has had heard from time immemorial, L.L.L. is always
important!
3.
HEALTH OF THE PROPERTY. If the underlying structure and
mechanicals have been intelligently designed and well maintained, this one is
of no importance. If not, a thorough inspection with top-grade recommendations
and cost projections is a must.
4.
VACANCY RATES. The number of rental homes listed and the number of
vacancies should be considered highly important for determining a promising
rental property in the New Orleans Area. In newly expanding communities,
sometimes you can spot a man parked near an intersection, clicking away on a
counter as the autos pass by. He’s measuring traffic to see if the volume is
great enough to support a gas station, or market, or mini-mall. The turnover of
rental listings—how long rental properties stay vacant from week to week—can provide
guidance about the same kind of information.
5.
COMPETITIVE MARKET. The average rent amounts advertised for comparable properties
can be the decisive factor for whether
a rental home investment makes financial sense.
Of
course, another factor that can make a big difference is the experience level
of your New Orleans Area Realtor®.
That’s actually key factor #6—and (I
hope) where I come in!
The culture of our city has so much to offer... Love our city, New Orleans.
Questions about buying or selling a home?
Call Terez B. Harris
504.297.2619
View Homes For Sale in Metairie
View Homes For Sale in New Orleans
Call Terez B. Harris
504.297.2619
View Homes For Sale in Metairie
View Homes For Sale in New Orleans
Terez B. Harris
Terez Harris NOLA Realtor Group
Terez Harris NOLA Realtor Group
(504)297-2619
www.TerezHarris.com
TerezHarris@kw.com
TerezHarris@kw.com
Terez B. Harris Terez Harris NOLA Realtor Group 504-297-2619 www.TerezHarris.com
Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100
Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100
Each office independently owned and operated. All brokers and agents licensed in the state of Louisiana.
