Pre-Construction Lots in New Orleans

In an interesting development, I’m found myself as a minor equity partner in a deal having about a 100 lots near New Orleans. I’ll probably get 2-3 lots in the last phase after I get some money from somewhere [probably the sale of the Boise house that I’m purchasing this week and wil be flipping, hopefully for a profit].

Its located in Wallace, which is inbetween New Orleans and Baton Rouge. After the hurricanes, Baton Rouge saw a huge spike in pricing and rents since people from New Orleans moved there. Wallace is a lot closer and the agent working on the deal already has a list of about 150 potential renters. According to the articles I’ve read on online newspapers, there are a lot of jobs in New Orleans but not enough housing. FEMA is handing out $3000-4000/month to help people pay rent and they’re living on cruiseliners and in fancy hotels. At some point this will stop and they’ll have to start looking for cheaper accomodation.

The lots are around 40k[plus minus a few thousand] and the building costs are around $85/sq ft. According to what I’ve heard, the finished product will be around 10% below market at todays prices and maybe more in 6 months when the house is finished.
Here’s the website: www.preconlots.com.

Anyone out there buying in New Orleans with comments??

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