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Message
NOLA Condo Advice...
Posted on 7/29/14 at 4:50 pm
Posted on 7/29/14 at 4:50 pm
OK...Here is the deal...
Married with 5 year old twins...Live in Laffy....$450k in bank...Own house worth $250k (Paid off)...Maxed out retirement each year...Salary ranges between $150k & $350k depending on the year....
My wife and I go to New Orleans about 6 times a year...We normally go for a Friday/Saturday stay and come back on Sunday...We have been contemplating buying a condo so we don't have to keep paying for parking and hotel everytime we go....We would also like to have a place to stay at consistently instead of finding the cheapest hotels each time....I feel comfortable paying cash for a $300k condo....But by the time we figure in fee's along with taxes, we are probably somewhere in the $8k-$10k/year....I figured we could rent it selectively using something like AirBnB and make that $10k year to offset the fee's....
What do you guys think? Is that doable? Anyone have experience renting out a condo in the french quarter area? I feel hesitant due to it being more than likely a high in the market...I think the real estate market is at an all time high there....
We do a very good job of saving...We pinch pennies where we can and I invest in the no brainers (401k), but I am not a savvy investor and I am getting nervous having all of this money in the bank not doing anything for me...My wife and I are 33 and 34 by the way...Not saying this to say look at us or anything...We are just average people with limited investment experience and I was hoping to get others opinions on the matter. Thanks in advance!
Married with 5 year old twins...Live in Laffy....$450k in bank...Own house worth $250k (Paid off)...Maxed out retirement each year...Salary ranges between $150k & $350k depending on the year....
My wife and I go to New Orleans about 6 times a year...We normally go for a Friday/Saturday stay and come back on Sunday...We have been contemplating buying a condo so we don't have to keep paying for parking and hotel everytime we go....We would also like to have a place to stay at consistently instead of finding the cheapest hotels each time....I feel comfortable paying cash for a $300k condo....But by the time we figure in fee's along with taxes, we are probably somewhere in the $8k-$10k/year....I figured we could rent it selectively using something like AirBnB and make that $10k year to offset the fee's....
What do you guys think? Is that doable? Anyone have experience renting out a condo in the french quarter area? I feel hesitant due to it being more than likely a high in the market...I think the real estate market is at an all time high there....
We do a very good job of saving...We pinch pennies where we can and I invest in the no brainers (401k), but I am not a savvy investor and I am getting nervous having all of this money in the bank not doing anything for me...My wife and I are 33 and 34 by the way...Not saying this to say look at us or anything...We are just average people with limited investment experience and I was hoping to get others opinions on the matter. Thanks in advance!
10
Posted on 7/29/14 at 4:54 pm to dallaslsufan
Going to be tough to find a condo downtown that is going to be nice at 300K.
Have you thought about calling the concierge at a place like the Ritz, tell them you want to come 6 times a year, and for them to waive parking fee? Would probably be a cheaper option in the long term with none of the headaches.
Have you thought about calling the concierge at a place like the Ritz, tell them you want to come 6 times a year, and for them to waive parking fee? Would probably be a cheaper option in the long term with none of the headaches.
Posted on 7/29/14 at 5:46 pm to dallaslsufan
quote:
I figured we could rent it selectively using something like AirBnB and make that $10k year to offset the fee's....
I don't know how enforcement will work or can work, but AirBnB is getting the squeeze all over. Fined in Barcelona, NYC is all over them, and now people here in N.O. are bitching about them.
Of course, if AirBnB does work, and you get good vacancy rates, you can do pretty good over renting it out since you can charge well over $100 a night instead of $1,200 a month or whatever. That math I have no idea on.
Just an FYI
This post was edited on 7/29/14 at 5:48 pm
Posted on 7/29/14 at 5:51 pm to Teddy Ruxpin
1201 Canal St. Apartments
Posted on 7/29/14 at 6:01 pm to dallaslsufan
Doesn't sound worth it for 12 nights a year. Why not invest the 450k in something with a return instead of just offsetting the costs of condo fees while having the hassles of managing a rental. Surely, it less trouble to find a place to stay at a decent price vs. having to deal with rental customers.
Posted on 7/29/14 at 6:12 pm to dallaslsufan
quote:
Married with 5 year old twins...Live in Laffy....$450k in bank...Own house worth $250k (Paid off)...Maxed out retirement each year...Salary ranges between $150k & $350k depending on the year....
BTW sounds like a nice life.
You hiring?
This post was edited on 7/29/14 at 6:13 pm
Posted on 7/29/14 at 6:42 pm to dallaslsufan
With interest rates so low, there's certainly no way I would pay cash. Find somebody to mange your money if you don't feel confident investing it yourself. Most anybody can earn you 4%+ which would outweigh the interest you'd pay on the mortgage.
Also, you're going to have to furnish the place, and probably have some sort of house keeping when you rent it out, and then there's maintenance. Most properties down there are probably pretty old.
Just a couple of thoughts. In the end if it's something you really want, go for it.
Also, you're going to have to furnish the place, and probably have some sort of house keeping when you rent it out, and then there's maintenance. Most properties down there are probably pretty old.
Just a couple of thoughts. In the end if it's something you really want, go for it.
Posted on 7/29/14 at 7:05 pm to dallaslsufan
Maintenance, condo fees, taxes and insurance are going to be a lot more than $10,000
Posted on 7/29/14 at 7:22 pm to tes fou
My advice would be to find a partner that you know and trust and get a nicer unit. I have a couple of them in the warehouse dist and have seen many units in almost all the buildings. Its hard to find a decent unit in that price range. You could get a one bedroom in the cotton mill but if rather stay in a hotel for the times you come to town. If you do want to go the one bedroom route I would try Julia place or the rotunda. I actually flipped one in the rotunda a couple years ago. To give you an idea, it sold for 230k a couple years ago.
As for the quarter, my knowledge is lacking. I stick to warehouse dist because I spend weekends down there with kids and wouldn't want to do so in the quarter.
If you have any questions i would be more than happy to answer.
As for the quarter, my knowledge is lacking. I stick to warehouse dist because I spend weekends down there with kids and wouldn't want to do so in the quarter.
If you have any questions i would be more than happy to answer.
Posted on 7/29/14 at 7:35 pm to dallaslsufan
To add to what others have posted, I would say most condos downtown do not include a parking spot. Can be as much as $200/month in the building. That's what the high end, but you are looking at at least $100/month to secure a parking spot. There are a few with spots included, but the $300k range have limited options
Posted on 7/29/14 at 7:59 pm to dallaslsufan
I think the numbers work with airbnb. I looked at the French quarter a couple of times and saw occupancy rates at 70%+ at $200 a night. Do the math on that and that is a sizable yearly income if you have a decent management company...
Posted on 7/29/14 at 11:17 pm to dallaslsufan
Simply stay in a nice hotel each time .
You will come out better in the long run......condos will ALWAYS cost more than you realize.
For $6000 per year, you could stay in pretty much any top of the line hotel for 6 trips.
You will come out better in the long run......condos will ALWAYS cost more than you realize.
For $6000 per year, you could stay in pretty much any top of the line hotel for 6 trips.
Posted on 7/29/14 at 11:47 pm to dallaslsufan
We seem to think alike. I'm been considering the same move for a while. I think it is a great move with some nice tax advantages if you treat it as a rental property. You can write off expenses etc., including cost of 5-6 visits per year to check on the property.
I would form LLC for rental to reduce personal liability if someone hurt or murdered onsite.
Just check latest laws and stink re private party rentals in NO. I think it is basically illegal and a lot of hotels are really whining about lax enforcement of regs by police. Saw an interesting article on this recently in NOLA.
I would form LLC for rental to reduce personal liability if someone hurt or murdered onsite.
Just check latest laws and stink re private party rentals in NO. I think it is basically illegal and a lot of hotels are really whining about lax enforcement of regs by police. Saw an interesting article on this recently in NOLA.
Posted on 7/30/14 at 9:33 am to Monk
I don't get the whole "buy a vacation condo" line of reasoning. You are now stuck taking your vacations in the same exact place, year after year. Why would you want to repeatedly go to the same city, over and over again? For less cash than a condo purchase, you could go to Europe 2 times a year for the next two decades. (Yes, seriously, you could. And stay in rental apartments, not tiny hotels.)
Posted on 7/30/14 at 9:42 am to Monk
quote:
Just check latest laws and stink re private party rentals in NO.
This has been a big issue in NOLA lately. There are some taxes involved in "short-term rentals" and regulations and such and the city wants to crack down on them. Don't know how successful they will be.
And unlike the beach condo discussion, I think condos here in touristy areas will increase in value... provided we don't have a nasty crime situation develop that targets tourists, or another major hurricane or oil spill.
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