What is the property tax rate for investment properties in Louisiana?

The average effective property tax rate in Louisiana is 0.55%. This rate is applied to the purchase price during the hold period for flip calculations, and to the ARV for BRRRR DSCR calculations. Actual rates vary by county and municipality — verify with the county assessor for your specific property.

How long does foreclosure take in Louisiana?

The average foreclosure timeline in Louisiana is approximately 2850 days (95 months). This timeline is used in the stress test to model a worst-case hold period. Louisiana uses attorney-required (judicial) foreclosure proceedings.

How much does homeowners insurance cost for a rental property in Louisiana?

For a $200,000 property in Louisiana, the estimated annual homeowners insurance premium is approximately $4,609. This calculator uses a non-linear piecewise interpolation model scaled by Louisiana's risk multiplier, so the estimate adjusts based on property value. Investment properties typically cost 15-25% more to insure than owner-occupied homes — get actual quotes from an insurance agent for your specific property.

Is Louisiana a good state for BRRRR investing?

Louisiana has a 0.55% property tax rate, no transfer tax, requires an attorney at closing, and has a 95-month foreclosure timeline. Whether it is good for BRRRR depends on the rent-to-price ratio in your specific market, local landlord-tenant laws, and your ability to find deals below market value. Use this calculator to model specific deals with Louisiana's actual cost structure.

Louisiana Flip vs. BRRRR Calculator

Analyze fix & flip and BRRRR deals using Louisiana-specific property taxes, insurance costs, transfer taxes, and foreclosure timelines.

Preliminary screening tool only.Default values are illustrative examples — not market offers.Louisiana costs shown use state-level averages that vary by county, property, and provider. Verify every number with local professionals before committing capital. This is not investment advice.

How We Calculate Louisiana Deal Costs

Property Taxes: Louisiana's average effective property tax rate is 0.55%. During the flip hold period, taxes are calculated on the purchase price. For BRRRR DSCR, taxes are based on the ARV (post-rehab appraised value) since the property will be reassessed after renovation. Actual rates vary by county — verify with your county assessor.

Homeowners Insurance: Insurance is calculated using a non-linear piecewise interpolation model scaled by Louisiana's risk multiplier. For a $200K property, the estimated annual premium is $4,609; for a $325K property, $6,683. Investment properties typically cost more to insure than owner-occupied homes — get actual quotes for your specific property.

Attorney Requirement: Louisiana requires an attorney at real estate closings. A $1,000 legal fee is included in the upfront cash calculation. Actual attorney fees vary.

Foreclosure Timeline: The average foreclosure process in Louisiana takes approximately 2850 days (95 months). This timeline is added to your hold period in the stress test to model a worst-case scenario. Louisiana uses judicial (attorney-required) foreclosure proceedings.

Louisiana Real Estate Investing FAQs

Louisiana Foreclosure Process

Foreclosure Type: Louisiana's civil law system is unique. Primary method is Executory Process — an accelerated judicial proceeding (not a full trial) that is faster than ordinary process; effectively functions like a non-judicial process in speed. Ordinary (full judicial) foreclosure is also available. A Deed of Trust is not used — lenders use a mortgage with a confession of judgment clause enabling executory process.
Deficiency Judgments: Allowed after proper appraisal process. Louisiana requires an appraisal and if the sale price is less than 2/3 of appraised value, the lender may not get a deficiency. Louisiana's deficiency rules are unique to its civil law system — confirm with an LA real estate attorney.
Right of Redemption: No statutory right of redemption after executory process sale.
Typical Timeline: Executory process: approximately 60–120 days — reasonably fast given it's a court process. Orleans Parish (New Orleans) courts can be slower.

Legal and regulatory details can change. Verify current requirements with a local real estate attorney before relying on this information for investment decisions.

Louisiana Landlord-Tenant Law

Rent Control: None statewide. New Orleans does not have rent control.
Security Deposit: No statutory maximum. Must be returned within 1 month of lease end.
Eviction Process: Judicial only (Rule to Evict / Eviction Proceeding). Louisiana is considered relatively landlord-friendly. From 5-day notice to judgment: typically 3–5 weeks in most parishes. Orleans Parish (New Orleans) can be slower.
Notice Periods: 5-day pay-or-quit for non-payment; 5-day for lease violations; lease termination notice per lease terms or standard civil code (typically 10-day for month-to-month).
Duty to Mitigate: Louisiana's Civil Code does not expressly codify a duty to mitigate for leases. Landlords may have some ability to hold tenants for full rent. Civil law treatment differs from common law states.

Legal and regulatory details can change. Verify current requirements with a local real estate attorney before relying on this information for investment decisions.

LouisianaTax & Insurance Climate for Investors

Homestead Exemption (Investors): Louisiana has a $75,000 homestead exemption off assessed value for owner-occupied primary residences — one of the most generous in the country. Investment properties do not qualify. Effective rates are low for owner-occupants; investors pay full assessed value rates.
Reassessment at Purchase: No automatic Prop 13 reset. Louisiana reassesses every 4 years (quadrennial reassessment). Between reassessments, values are capped at 10% increase per year.
Investor-Specific Taxes: No investor-specific surcharges. Standard transfer/conveyance fees apply. Louisiana has a mortgage/note tax on new loans.
Insurance Considerations: Hurricane risk is among the highest in the U.S. — especially in coastal and south Louisiana (New Orleans, Baton Rouge, Lake Charles, Houma). Named-storm wind and flood are the two critical coverages; many standard policies exclude both. NFIP flood insurance is essential for most of south Louisiana. Louisiana Citizens Property Insurance is the insurer of last resort. Private insurers have been withdrawing from the Louisiana market. Louisiana insurance market has been in significant crisis post-Ida (2021) — insurance availability and cost are critical underwriting factors before any south LA purchase.
Rental Insurance Requirements: No state requirement for rental insurance.

Louisiana Investor Regulatory Environment

Business License / Rental Registration: New Orleans has a short-term rental registration system and a temporary certificate of occupancy for long-term rentals in some zones. Baton Rouge and other parishes vary. No statewide rental registration.
LLC Ownership: No restrictions. Louisiana LLCs are common for real estate holding.
Short-Term Rental (STR) Restrictions: New Orleans has some of the most restrictive STR rules in the country — non-owner-occupied residential STRs were essentially banned in most residential areas (2019 ordinance). The rules have been modified multiple times and are subject to ongoing litigation — critically important to verify current rules before STR investment in NOLA.
Disclosure Requirements: Louisiana Property Disclosure Document required for sales. Lead paint (federal). Specific flood/subsidence/environmental disclosure requirements given Louisiana's geography. Disclosure of prior hurricane damage is important given claim history.
Wholesaling: Louisiana Real Estate Commission has interpreted certain wholesaling activities as requiring licensure. This is an active area of regulatory attention.

Legal and regulatory details can change. Verify current requirements with a local real estate attorney before relying on this information for investment decisions.

Louisiana Market Overview for Investors

Top Investor-Friendly Markets: Baton Rouge/East Baton Rouge Parish (state capital, LSU, petrochemical, most stable LA market). New Orleans/Orleans Parish (tourism-driven, unique market, STR premium but highly regulated). Shreveport/Caddo Parish (northwest LA, affordable cash flow, oil/gas). Lafayette (Acadiana oil/gas economy, hybrid). Lake Charles/Calcasieu Parish (LNG/industrial growth — rebuilding post-Ida).
Market Characterization: Primarily a cash flow market with limited appreciation. New Orleans is a unique appreciation/STR play but with high regulatory and insurance risk. Baton Rouge is the most stable and investor-accessible market.
Notable Trends: Louisiana faces significant long-term risks from sea level rise, subsidence, and hurricane frequency/intensity. Insurance market crisis is materially affecting investment viability in coastal areas. LNG export terminal construction along the Gulf Coast is driving industrial employment and some housing demand. Population growth is flat-to-negative statewide.