Archive for February, 2008
New Orleans Condos as Rental Investments. Easy Choice!
February 29th, 2008 categories: Condo Knowledge, New Orleans Condo Reviews, Warehouse District
In today’s investment market, rental properties are a no-brain-er for most of us; but condos in New Orleans are a well kept secret and a perfect solution for a part-time landlord like me.
I thought I’d share some of my reasons for purchasing a New Orleans condo as a rental property, and not all of them are “just business.” 
As a single woman and business owner, I have owned rental properties before. Over the past few years, this situation has become less and less attractive to me as an income stream, mostly because of my lack of knowledge about building and repairing these properties. I seem to spend more than I take in, simply because property upkeep is somewhat a mystery to me. Repair jobs that might be done inexpensively sometimes end up way over budget, and I had recently decided that my rental properties would be sold, and I would turn my attention elsewhere for investments in the coming years.
I changed my mind about that over New Year’s this year. I still have no desire to add more houses to my rental property list, but a trip to New Orleans, and a revival of my devotion to that unique area prompted me to look into buying a condo for myself and my daughter to use so that we could visit the city more often. Simply put, after a twenty year exile, I returned to New Orleans and fell in love with it all over again.
Our condo is a perfect situation for me. We purchased a unit at the Cotton Mills - a fun, one-bedroom fixer-upper at a great price. We are currently in the middle of a renovation, and when the unit is updated and redecorated, we will then have a rental that solves many of the problems I experienced as a landlord.
First, the upkeep on the building itself is not my problem. My condo dues (under $200 per month), take care of insurance and any structural problems with my condo. I am responsible for the little things that might go wrong inside the unit, but any wiring, roof trouble, building structure problems, or property damage to the building are taken care of by the association. I no longer have to concern myself with lawn care or worrying about the security of my property, since all these things are included in the services provided by the condo association.
The second bonus for me is that the low interest rate I have secured on the mortgage this year will enable me to enjoy a very low payment, allowing me to rent the property and make a profit immediately. My unit will pay for itself, and should be easy to rent to the many out-of-towners who come to New Orleans for work and play. I also understand that medical students at Tulane enjoy the convenience and privacy of a condo off-campus, so the rental market is active and profitable.
It’s not all business, though. One of my favorite things about this arrangement is the fact that the condo, when not rented, is going to be a great getaway from northeast Louisiana. I’ll get to spend days on end walking the French Quarter, loving the random-ness of life on the streets of New Orleans, and volunteering wherever there is need, in the Hurricane Katrina rebuilding efforts.
Over the last month, I’ve been delighted by the welcome we’ve received as “new neighbors” in the building. Everyone in New Orleans is so friendly, and it reminds me that this city is not just a municipality, it’s a neighborhood. It’s one of the few places I know of that still enjoys the old arrangement of shop proprietors living above their stores, and I am loving the fact that I can walk almost anywhere I want to go from my Cotton Mills location. Excellent shopping, as always, is a real plus in the city, and there are so many attractions near the Warehouse District, I can hardly decide what to do every day.
We’re enjoying the “spruce up” process so much that I’ve decided to begin looking for more units next year. If “location, location, location” is the real secret to success in real estate, we’ve definitely got the best of all worlds in this rental property, and the more we visit the city, the more I remember why I am addicted.
The next condo we buy may be to live in!
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Lucky Dogs carts have called the French Quarter Home for over 50 Years.
February 28th, 2008 categories: French Quarter
The Lucky Dogs Wagons have made the French Quarter their home for over 50 years. Lucky Dogs are the only vendor allowed to sell food from carts and has an exclusive vending permit for the steam hot dogs. The hero of Confederacy of Dunces was once a Lucky Dog vendor. Your selection is limited to the famous steamed hot dog and a variety of toppings. Twenty one million have been sold to date along with a lot of stories. The carts are out daily and nightly until 4 am when they head back home. There are hundreds of stories from many nightly revelers on Bourbon Street. People have been known to ride the carts amid a nite in the French Quarter. Check out the various stories about the famous cart on the Company’s website. The prices have changed over the years but the taste is the same.
In New Orleans once these institutions get established they tend to be supported and stay around much longer than in other cities. Its like Star Bucks is here, but they are not the most popular coffee house. We will figure this out with your help.
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The Bakery Condos, New Orleans Warehouse District where some things come in small packages!
February 27th, 2008 categories: New Orleans Condo Reviews, Warehouse District
You guessed it, The Bakery Condos located at 1111 S. Peters was once a Bakery. It is the last condo complex in the Warehouse District before going under the Mississippi River bridge. The bakery was once “Consumers Biscuit Company” built in 1920. The 68 units of mostly one bedroom units were converted into condos in 2004. The vast majority of the units were converted and redone by the developer before being sold as condos in 2004. Its an easy access to the Interstate and a nice walk to the New Orleans French Quarter.
The 68 units in the Bakery Condos come in different views and sizes. Most of the units are small except there are a couple of penthouse units that have existed since the units were rentals. The best units are the exterior units that face outside with the large windows and high ceilings. The interior units face an interior atrium but have low ceiling and you do not get the historic feel of the exterior units.
The Bakery Atrium is four floors and let plenty of light in for the interior units. The fourth floor units have the highest ceilings. The units on S. Peters and those facing the Federal Fibre Mills have the better views. The Bakery sits between the Federal Fibre Mills and their parking lot and is two blocks to the New Orleans Convention Center.
The amenities include a small gym, small plastic pool and deck in the rear. They are OK at best. The unusual thing is there is parking in the garage and rear lot which is secure and most of the units have parking. I have sold three units in the building with garage parking. Two of those units were in the 160’s that had garage parking. Three of the units that I sold were used as second homes and were on the small side, but great for a weekend getaway. The units are professionally managed and always see someone there every morning doing something. Most of the better buys in the Bakery are the one bedrooms.
This is the nicest small unit pictured above that I sold several years ago. It had very high ceilings on the fourth floor looking out on a Hampton Inn and a park across the street. It got the morning light and the many windows gave it plenty of light. The wood floors, beams and masonery wall gives you the Warehouse District feel. After Hurricane Katrina this unit had 16 broken windows from debris blowing off a nearby building. The security crew taped and boarded the windows and no damage was sustained. The windows were repaired in several weeks which was quick in the fall of 2005. A very quiet building that seems to be well managed.
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Restaurants near the Warehouse District Condos, No Wendy’s or Golden Arches!
February 25th, 2008 categories: Real Estate News
Keep in mind, the tips Eric and Jack have on restaurants in areas of New Orleans usually skip the famous ones. This information is to help you eat with the locals. For a quick breakfast at a reasonable price to ward off hunger until lunch, Deanie’s is tough to beat. They also do a nice job on plate lunches and sandwiches. its on the corner of Poeyfarre and Annunciation across the street from the Cotton Mill Condos. It opens for 6 am and closes at 3 pm.
Across the street in the Cotton Mill Condo building sits the Sun Ray Grille. Imagine a restaurant where I have never tasted a main course! I have yet to make it past the appetizers like Crawfish Bruschetta, Crab and Portabella Stack, and black bean soup. The Sun Ray Grill is in the corner of the Cotton Mill Condos on the Annunciation corner nearest the bridge. The Sun Ray Grill has a parking lot on John Churchill Chase. “Failure to Launch” a movie filmed in New Orleans had a scene that was filmed in the Sun Ray Grille.
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Warehouse District Condos, Pet friendly? Pets Allowed?
February 24th, 2008 categories: Condo Knowledge, Warehouse District
The New Orleans Warehouse District condos and lofts are very pet friendly. I cannot think of a single complex that does not allow pets. There are going to be limits as to size and the numbers you can have. The condo documents will spell this out as to the types and sizes of the dogs. This is for insurance purposes mainly. There will be leash regulations in all of the units. There are tons of people that walk their pets daily as there are a number of nearby downtown parks or neutral grounds. Rarely do you see dog mess so people do take care with there pets.
Pets in New Orleans are part of your family. The rules change when you get to Uptown New Orleans where some complexes do not allow dogs. Always good to check first on what the basic rules are so you will not be disappointed later in the process. The MLS sheets should say what is allowed but never the less ask to be sure what the rules are. Some will allow cats but no dogs.
This is a photo of Baxter and Bootsie who are my sons dogs who are currently in Houston but are looking to returning to New Orleans sometime in the future.
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New Orleans Warehouse District Condos, Julia Place Condos, 333 Julia Street
February 23rd, 2008 categories: New Orleans Condo Reviews, Warehouse District
The Julia Place Condos and Lofts are in the center of the New Orleans Warehouse District 3 blocks from River Walk and a block to Magazine Street. The 333 Julia Street address takes up the entire block between Commerce Street and Tchoupitoulous Street but is actually two separate4 and 5 story buildings. Its across the street from Emeril’s and seven blocks to the French Quarter. The individual units are going to vary more than any other condo complex in the Warehouse District. They are so different!
Some units have great views and large windows, many do not have any worthwhile views. Some units have parking in the garage and the parking lot, many do not have parking. Some units have high ceiling and others do not, it just varies by location within the complex. Some have been updated and others have not. Be ready to do a lot of work if the unit has not been updated. You may see some with all carpet, then others have all wood floors. Its just not easy to know unless you look at each of the units. There are one and two bedroom units. The initial owners paid 25k for parking when they bought from the developer when he started selling in 2004.
The amenities are there for everyone to enjoy. They include a roof top pool and top notch entertainment room with great views of the city. The exercise room looks out onto Julia Street near the secure entrance. All the units are on floors 2, 3, 4 or 5 with the office excercise room and parking on the first floor. There is an on site manager during the day. If you can find a unit that has all the pluses then you can have a great unit. My clients have either liked it on their initial visit and others did not like it at all. The better units are going to have exterior views with higher ceilings. Those have been the ones that I have sold. Both were two bedroom units. Getting a parking spot is a big plus. You can rent it out if you do not use it. Some great roof top views at nite.
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Looking to the Future, Loan from the past?
February 22nd, 2008 categories: Julie's Mortgage Tips
FHA loans will be used more and more in the following months to come. Conventional loans keep tightening their guidelines and are requiring larger down payments.
What is an FHA loan?
FHA stands for Federal Housing Authority. It is a government loan guaranteed 100% against default by the Federal Housing Authority.
What are the advantages of FHA?
- Low down payments
- More liberal on credit problems
- Low fee’s
- No income limits
Sales Price Limits:
- single family $218,500
- double $256,248
- tri-Plex $309,744
- four-Plex $384,936
Congress is presently trying to pass a bill that will raise the sales prices on FHA loan.
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New Orleans Condos, Who manages your condo?
February 21st, 2008 categories: Condo Knowledge
In many of small New Orleans condo associations the owners themselves manage the complex by electing members to certain positions. However size does not determine how it is managed. Many small associations do hire management companies to take care of the repairs, Insurance issues, paperwork, bills, upkeep and much more. As the complexes get larger there is so much work to do that the association has an on site manager that either they hire or are placed there by a management company. Many ciations that have residents that are busy, hire management companies to take care of the day to day problems that arise. The condo boards then oversee the management companies work.
There are few associations that hire and manage there own such as 700 S. Peters does. Most use management companies where they can draw on the resources and bargaining power of the management companies. They may not be on site but manage several properties.
The small conversions are generally going to be run by the members themselves and handle the various duties between the members. If you are a second home owner you may want the managed concept to know the business in handled by a professional. This may even be the case if you live there. It cost extra but may be cheaper in the long run.
New conversions and new condos are run by the developers until a certain amount of the condos are sold and a certain amount of time passes. This is spelled out in the condo documents. Upon getting a contract accepted you will able to read the rules, regulations and condo documents.
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The best real estate purchase ever!
February 20th, 2008 categories: French Quarter, New Orleans Origionals
That buy was the Louisiana Purchase. According to the “Geopolitical Intelligence Report,” and who can argue with a title like that, there must be a New Orleans. The rationale is that it was the Mississippi River which set America apart from other nations. We were the first country to produce more than we consumed with an economical way to transport that surplus to the world market. That mode of transport was barge traffic on the Mississippi. The authors of the report mention the impact of the oil business and tourism, but it is the port which makes New Orleans necessary.
The Louisiana Purchase was signed at what we now call the Cabildo which now serves as the Louisiana State Museum on Jackson Square since 1911. The Cabildo was constructed between 1795 and 1799 and was the seat of the Spanish government in the new world. The “Sala Capitular” was on the second floor where the Louisiana Purchase was signed on 1803. It later became a courtroom for the Louisiana Supreme Court.
The other historical note is that is that the famous case of Plessy vs. Ferguson case was decided here and later upheld by the U.S. Supreme Court in 1892. The “separate but equal” clause became the law of the land. The law required separate railroad cars for whites and blacks. This was later overturned in 1954 in Brown v. Board of Education case in 1954. As you can see there was a lot of history in the French Quarter and this is only a slice of it.
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Warehouse District Condos, What is the #1 factor in selling your condo!
February 20th, 2008 categories: Condo Knowledge, Warehouse District
Besides pricing your unit correctly, your unit must be updated and ready for sale in all phases. In the New Orleans Warehouse District most buyers want an updated unit. It is very hard to sell a unit that has not been updated unless you discount it enough to make it profitable for some else to upgrade and update. The people willing to do updates are in the vast minority as most do not wanted to get involved in updating. The fact that most of the new units have come on line in the last 5-6 years are updated with new kitchens and appliances gives fixer-uppers stiff competition. The more touches that you can make to your condo the better chance that you have at selling it at top dollar.
People expect to find granite counter-tops, new appliances, nice ceiling fans, modern light fixtures, wood floors, high ceilings, large windows and plenty of light. The updates have to look professional and appealing to most buyers. This even more true in the lower price units as people want nice updated units even though they are going to be small. The little things do make a difference. Your buyers are professionals whose time is more valuable than getting into a project. Your buyers are second homers who just want a nice place. Your buyers lead busy lives and just do not have the time to update. The expectations are higher.
By the same token if you are looking for a fixer and you have the ability and the time to update you may find a great unit that needs the work. 
You of course would get the discount needed to do the work plus a “Chance Factor” You however have to update to get the value out of the units. Most buyers or decision makers are females in the area so get their opinions as to what they like. Sorry guys but that is a fact in the Warehouse Condo market. One other factor that is important is the staging of the unit. How clean and decorated with furniture and art will help your unit sell quicker and get the most dollars for your product. remember many units are small so the right amount of furniture and things need to be to scale. A professional paint job can do wonders setting your unit apart form the rest.
The last thing is know who your competition is. Most or all buyers are going to look a a few units, the best will be sold. Those that look expensive will not get shown as much, everyone knows the difference. Those condos that are priced correctly, easy to show, and well done will get the most action and the better sale.
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