Investing in a multi-family property can be a great way to overcome the challenges in the New Orleans real estate market, including rising interest and insurance rates, inflation, and a shortage of available properties for sale. One smart strategy for prospective buyers is to consider owner-occupying a multi-family property.
New Orleans is a great location for this type of investment because there is an abundance of doubles/duplexes, triplexes, and fourplexes available within financial reach for average buyers.
What is a Multi-Family Property?
A multi-family property is a type of real estate property that consists of multiple units or residential dwellings that are designed for occupancy by multiple families or individuals. These properties can range in size from small apartment buildings with just a few units to large high-rise buildings with hundreds of units.
Multi-family properties can be owned by individuals, partnerships, corporations, or other types of organizations. They can be rented or leased to tenants who typically pay a monthly rent or lease payment in exchange for the use of the property.
Multi-family properties are often considered a good investment opportunity because they can generate steady rental income and can appreciate in value over time. They can also provide economies of scale in terms of maintenance and management, as the costs of upkeep are spread across multiple units.
Overall, multi-family properties can provide an attractive investment option for individuals and organizations looking to generate passive income or build wealth through real estate ownership.
Benefits of a Multi-Family Property
Generate Income while Offsetting Interest Rates & Risk
Owning a multi-family property has several benefits, including the potential to offset rising interest rates and mitigate risk through multiple units generating income. Multi-family properties also offer a means of offsetting short and long-term inflation by providing a hedge against inflation with matching increased rents over a long period of time.
Flexibility & Wealth-Building
Investing in a multi-family property can also be an asset for flexibility on your subsequent home search. If you decide to move, you can rent out all of the units and use the rental income to pay for your new home, building your real estate portfolio and investing in your future.
Expenses Become Tax Benefits
Additionally, owning a multi-family property can provide additional tax benefits. As a property owner, you may be able to deduct expenses related to repairs, maintenance, and property management. You may also be able to claim deductions for mortgage interest, property taxes, and depreciation. If you live in one of the units of the multi-family property, you may be able to claim a portion of the property as your primary residence and potentially qualify for tax breaks such as the capital gains exclusion.
It’s important to note that tax laws are complex and constantly changing, so it’s essential to consult with a qualified tax professional to understand the specific tax benefits and implications of owning a multi-family home. By owner-occupying a multi-family property, you can enjoy the benefits of investing in real estate while also providing a place to call home.
Why buy a multi-family house and owner-occupy it in New Orleans?
In summary, owner-occupying a multi-family property in New Orleans can be a smart investment strategy for those looking to offset rising interest rates, mitigate risk, and build long-term wealth through real estate. To make the most of this investment opportunity, it’s crucial to work with a knowledgeable and experienced Realtor who can help you navigate the market and identify properties that are primed for a lowball offer. An experienced agent may be able to identify properties that have been mis-marketed or may have information about Sellers looking to part with properties significantly under their current list price.
In addition, working with a Buyer’s agent in New Orleans is 100% free, so it’s a no-brainer to take advantage of this service. By partnering with a trusted real estate professional, you can maximize your investment potential and find the perfect multi-family property to suit your needs and budget.
New Orleans Realtor Michael Styles interviews his client Caleb Dufresne at his property to discuss a lifestyle in his neighborhood, Tremé.
Michael visits his good friend and client, George Bevan, to celebrate Mardi Gras and discuss daily life in the Garden District! The two discuss their favorite parades, the lingering effects of the short term rental ban on the neighborhood, and much more.
Michael meets up with his friend and client Social Influencer Sebastien Bonnot to discuss life living in New Orleans’ Warehouse District and to celebrate New Orleans’ Running of the Bulls!
The city of New Orleans recently contacted New Orleans Homeowners with their 2023 Tax Assessments. As a result of increasing sales prices in New Orleans, City Hall has increased assessed property values on many homeowners. This increase can be troublesome for some because in the worst case the home is no longer affordable due to the new tax bill.
New Orleans Homeowners should know they may appeal the assessed value through August 18, 2022, by 4PM. Walk-ins are accepted, but appointments are encouraged and can be made at this link.
Here are some factors that one should consider before merely cutting a check:
- Consult your Realtor on comparable sold properties in your neighborhood. If there are recent sales in your area that may contradict your assessed value, you may have a case to dispute the new bill. If you do not have a Realtor, here is a link to a good agent.
- The Assessor’s Office does not have pictures or access to the inside of your property. Your house may be valued as a new renovation whereas it may in fact be completely gutted. If your property is in disrepair, the Assessor’s office may not know, causing a higher assessed value. You should have a general contractor or specialist for whatever the issue is draw up an invoice/estimate for the cost of repairs, or simply bring in pictures to the Assessor’s office.
- If you’re over the age of 65, you may qualify for a freeze on your property taxes.
If you did not receive a letter from the Assessor’s Office, you can check your assessed value at this link. If you’ve seen a tax hike that you feel may be disputable, give your Realtor a call before it’s too late.
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