Louisiana DSCR loans are an excellent option for an experienced investor or second-time landlord alike, as they rely on the property's rental income rather than personal income to determine your eligibility for funding. Unlike traditional loans, DSCR loans don't need to review your tax returns or debt-to-income ratio; instead, they identify the property's potential income by dividing its rental income by the mortgage payment.
The main benefit of the DSCR loan calculation for Louisiana investors is that they can access loans without investigating their personal income. This is a major relief for self-employed borrowers, who may not qualify for traditional loans. This truncated investigation also means that the application process is faster, allowing investors to quickly add to their real estate profile.
Investors can also secure DSCR loans through a corporation, preventing entanglements with their own finances.
Why invest in Louisiana real estate? The primary reason is that it is an up-and-coming economy with low real estate prices, making it a great deal for younger investors without significant cash. The short-term cost will pay for itself over time as Louisiana diversifies its industry and demographics.
In addition, it's a popular tourist attraction, particularly around Mardi Gras, where visitors from all over come to investigate New Orleans and the surrounding areas. Short-term rentals do great here, as do long-term rentals for residents.
Investors love adding Louisiana to their real estate portfolio, as there are many up-and-coming cities throughout the 64 parishes that make up the state. These five are some of the strongest contenders based on population growth, average rents, and economic projections.
Baton Rouge is a highly sought-after tourist destination with great restaurants and a vibrant nightlife. Commercial spaces cost about $19 per square foot, while apartments cost approximately $1,208 per month across all types.
Quirky Shreveport is full of exciting attractions, which means that property types of all stripes will do well here. While not as large as Baton Rouge or New Orleans, it draws its fair share of tourists, indicating a strong need for restaurants, hotels, and other amenities. Average rent is cheaper than in larger cities, at around $972 per month; commercial rent is much lower at $14.44 per square foot, which indicates an excellent opportunity for investors to jump in while costs are low.
Lake Charles is known for gambling, tourism, and education, which indicates a great need for hotels and short-term rentals. Rents here are comparable to Shreveport at $987 per month despite having less than half the population, showing that investors can more than afford to gamble on this city.
Its commercial rental income is higher than that of larger cities at $21.37 per square foot in deference to its booming tourism industry, making it one of the most effective places to get DSCR loans in Louisiana.
New Orleans is the cultural capital of Louisiana, known around the world for Mardi Gras and its rich history. Despite this, rent is affordable compared to other large cities across the US, at only $1,750 per month. There's a large discrepancy between retail and office rents, with retail being as high as $37 per square foot and office spaces netting only $19.19 per square foot.
Lastly, we come to blue-collar Marrero, known for its ample outdoor activities and breathtaking bayou views. Its residential rents are quite reasonable at $1,613, but the retail rents are quite shocking: currently, they stand at only $4.71 per square foot, making this a great place for younger investors.
When you're ready to add to your real estate portfolio, Visio Lending is there to help finance your dream. We utilize only the property's ability to repay its debts to determine if borrowers qualify rather than their personal income, and we offer a highly competitive interest rate.
Whether you want to purchase or refinance a real estate project, we're the top lender for Louisiana DSCR loans, helping thousands of investors fulfill their goals and expand into new territories. Contact us today to learn how we can help with real estate financing throughout the Bayou State.
Check out some of Visio Lending's recently closed DSCR loans in Louisiana.
Baton Rouge, LA
New Orleans, LA
New Orleans, LA
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Visio Lending is the nation's premier lender for buy and hold investors offering, long-term loans for SFR rental properties, including vacation rentals.