Real estate investors seeking both cash flow and appreciation are drawn to Louisiana, as it offers affordable property values, a favorable tax environment, and a wide range of market opportunities. The Bayou State is highly regarded among investors, and Easy Street Capital takes pride in being a top provider of rental loans in Louisiana.
Types of Investment Property Loans for Louisiana Real Estate Investors
When it comes to real estate investing in Louisiana, there are many unique markets and types of investment property loans to choose from. For investors that like to get their hands dirty, renovating older properties, hard money renovation loans are a perfect choice! These loans allow you to buy a property quickly and finance your rehab costs as well! Once you are done, you can either “flip” the property for a speedy profit or follow the BRRRR Strategy by renting it and refinancing into a long-term, low-rate DSCR loan!
Long-term DSCR Loans are also great for investing in turnkey rental properties. Turnkey refers to properties that are live or rent-ready and require no rehab. These could be used as long-term, medium-term or short-term rentals. Most DSCR Loans are fixed rate for thirty years, locking you into a fixed interest rate for the long-term. If historical patterns continue, rents and appreciation increase steadily each year. Thus, if history is an indication, debt costs stay the same while cash flow increases! This can lead to financial freedom and long-term wealth.
Louisiana: A Landlord-Friendly State
One of the main reasons real estate investors that utilize rental loans like Louisiana is that it’s a landlord-friendly state. Owners of rental properties, such as typical DSCR Loan borrower, are secure investing in the state. Unlike some other states, Louisiana does not have any form of rent control. This means rental property owners are free to set rents at whatever level the market will bear. This can be an advantage for landlords who are looking to maximize their profits.
Louisiana law allows landlords to terminate a lease agreement and evict a tenant with a five-day notice if the tenant fails to pay rent on time or violates other terms of the lease. These factors combined make Louisiana an attractive state for real estate investors looking to become landlords with long-term rentals.
Where To Invest In Real Estate In Louisiana
Louisiana is a favorite market for real estate investors because of its unique options. New Orleans is the largest city in Louisiana and is home to Tulane university and the infamous Bourbon Street. Baton Rouge, located near the Mississippi River, is home to the flagship university, Louisiana State University and is the capital of the state. Shreveport is the third largest city in the state and the commercial center of the Ark-La-Tex region. Lafayette is the fourth largest city in the state and is known for its amazing southern cuisine and calendar full of festivals. Finally, Grand Isle is located in the Gulf of Mexico, and another great market for short term rentals, with beaches and fishing for visitors.
New Orleans
New Orleans is an iconic and world-renowned city known for its historic charm and lively atmosphere. This is the largest city in Louisiana, with a population of over 369,000. New Orleans also boasts a diverse economy with a strong presence in industries such as tourism, hospitality, healthcare, and education. Real estate investors can take advantage of affordable investment opportunities in New Orleans, with the median sales price for a single-family home in January 2024 at $340,000, according to Redfin.
Tulane University enrolls over 13,000 students, creating a consistent demand for well-located rental properties near campus. Investors who cater to the needs of reliable students and choose properties strategically can achieve higher returns compared to traditional long-term rentals. With its super lively atmosphere and strong rental market, New Orleans, particularly in proximity to Tulane University, presents an enticing opportunity for real estate investors seeking attractive investment prospects.
People from all over the world flock to New Orleans to experience its vibrant atmosphere, immerse themselves in its rich history, and revel in the iconic energy of Bourbon Street. As the heart of the city’s famed French Quarter, Bourbon Street pulsates with lively nightlife, resonates with vibrant music, and teems with a bustling entertainment scene.
New Orleans’ diverse economy, competitive real estate prices, and vibrant history and culture make it an enticing market for real estate investors seeking rental properties.
Baton Rouge
Baton Rouge, celebrated for its unique culture and attractions, attracts visitors worldwide, providing an appealing market for real estate investors interested in short-term rentals. With a population of 227,000, and being the capital of the state, there is a high demand for rentals. The robust tourism industry, combined with the city’s rich history and vibrant arts scene, presents an ideal environment for investors.
Real estate investors can find affordable investment opportunities in Baton Rouge, with the average home value of a single-family home of just $212,059 as of January 2024, according to Zillow. The city’s low Price-To-Rent Ratio of 14.34 reflects a housing market that is generally more affordable than the US average. Baton Rouge’s growing market presents favorable conditions for investors seeking long-term returns.
Louisiana State University contributes significantly to the local rental market. With a substantial student population, both local and out-of-state, demand for short-term rentals is consistent. LSU’s academic calendar ensures a continuous influx of students requiring housing. The LSU college football season draws passionate fans from both near and far who eagerly come to rally behind the Tigers and revel in the electric atmosphere. Baton Rouge presents an opportunity for investors seeking short term rental properties and long-term rentals.
Shreveport
Shreveport, the third-largest city in Louisiana, is home to a vibrant community with a population exceeding 190,000 residents. The city boasts a diverse and thriving economy, with industries such as healthcare, food services and manufacturing playing pivotal roles. Major employers in the area include Harcros Chemicals Inc, and AFS Logistics, providing ample job opportunities for residents and renters.
Shreveport thrives with its vibrant arts and culture scene, boasting attractions like the renowned Shreveport Symphony Orchestra and the captivating R.W. Norton Art Gallery. Shreveport resonates with its rich musical history, igniting the soul with the rhythms of jazz and blues.
Shreveport is home to Barksdale Air Force Base, which is one of the largest military bases in the country. Barksdale Air Force Base attracting a substantial number of service members and their families. This military presence creates a strong demand for medium-term rentals, making it an attractive opportunity for real estate investors. With durations ranging from months to years, these rentals can provide a consistent and reliable income stream. In addition, Shreveport offers an affordable market for beginner investors, with a median house sales price of $170,000, according to Redfin. This combination of steady demand from military presence and affordable housing makes Shreveport a promising market for real estate investment.
Lafayette
Lafayette is situated in the heart of the Cajun country. Additionally, the city is surrounded by beautiful natural landscapes, and known for its bayous, swamps, and marshes. Lafayette offers residents and visitors a unique blend of Southern charm and vibrant culture. The city pulses with lively music, as Cajun and Zydeco melodies fill the air, while its delectable cuisine tantalizes taste buds with famous dishes like gumbo and crawfish étouffée. Lafayette’s location provides easy access to outdoor activities such as fishing, boating, and birdwatching, offering residents and visitors a diverse range of recreational opportunities.
Lafayette flourishes with its dynamic arts and culture scene, showcasing remarkable attractions such as the celebrated Lafayette Symphony Orchestra and the captivating Acadiana Center for the Arts.
According to Redfin, Lafayette presents an exceptional investment opportunity for savvy real estate investors, as indicated by its affordable median house price of $244,955 in January 2024. With such favorable market conditions, investing in single-family homes in Lafayette offers the potential for significant returns and long-term growth.
Grand Isle
Grand Isle captivates visitors with its picturesque coastal charm, boasting stunning beaches and an abundance of natural beauty. Situated along the Gulf of Mexico, it offers residents and visitors an escape with its coastline and sunsets. Grand Isle is a popular destination for fishing enthusiasts, with its access to prime fishing spots and annual fishing tournaments. Additionally, this town hosts a variety of outdoor activities, including boating, kayaking, and birdwatching in its surrounding wildlife areas. With its beachfront homes and vacation rentals, Grand Isle presents an attractive opportunity for real estate investors interested in the short-term rental market. The town’s allure as a coastal getaway, combined with its vibrant fishing and outdoor recreation scene, makes it a sought-after destination for vacationers.
According to AirDNA, Grand Isle has a remarkable rating of 100/100 on “investability.” This reflects the opportunity for vacation rental investors to get good returns on affordable purchase prices. Short-term rentals will likely provide cash flow as the market projects solid occupancy and average daily rates.
Ready to Get Started?
Ready to invest in real estate in Louisiana? Easy Street Capital is top lender for rental loans in Louisiana, both hard money rehabs and long-term or short-term rental properties.
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