New Orleans portfolios mix building types and parishes: shotgun doubles in Mid-City, ranch houses in Gentilly and New Orleans East, and slab homes on the Westbank and in Metairie. A blanket loan puts five or more of them on one note.
In short: LendingStreet offers blanket portfolio loans that combine five or more New Orleans area investment properties, each 1 to 8 units, into one DSCR loan qualified on combined portfolio cash flow. There are no W-2s or tax returns, LLC borrowers are standard, and release provisions let you sell one property without refinancing the rest. Portfolio pricing applies, and properties in other states can be included on some programs.
In Orleans Parish, many long-term rental portfolios are concentrated in Gentilly, Mid-City, Broadmoor, Hollygrove, Central City, the Seventh Ward, New Orleans East and Algiers. Gentilly and New Orleans East have many mid-century ranch homes on slabs or low piers, while Mid-City, Broadmoor and the Seventh Ward are full of raised shotgun doubles and single shotguns.
Across the parish line, Metairie and Kenner in Jefferson Parish have steady rental demand near jobs and the airport, and the Westbank communities of Marrero, Harvey, Gretna and Terrytown offer lower prices. Chalmette in St. Bernard Parish and Slidell on the Northshore round out many portfolios.
A blanket loan can include properties in several parishes, each with its own assessor and tax rates.
Tenant demand differs across these areas. Gentilly and the Westbank draw families who stay for years, Mid-City and Broadmoor attract hospital and university staff, and Metairie and Kenner pull workers from the airport, the medical centers and Jefferson Parish employers. A portfolio that spreads across these submarkets tends to have steadier occupancy than one concentrated on a few blocks.
In most markets, taxes are the expense that most shapes portfolio DSCR. In metro New Orleans, insurance often is. Wind coverage on older frame houses, flood insurance in mapped zones and higher deductibles have pushed premiums up, and they vary a lot from one property to the next.
On a blanket loan, each property needs its own hazard coverage, plus flood and wind where required. A raised, recently roofed home outside a high-risk flood zone can cost a fraction of what a slab home in a low area costs to insure. Gather every declarations page before you request a quote.
Some investors lower their insurance costs over time by replacing roofs with fortified-standard roofs, raising or flood-proofing mechanical equipment and documenting improvements for their carrier. Those upgrades can also make a property easier to refinance or sell, since the next owner and the next lender will look at the same premium.
This example is illustrative and not a quote. An investor owns seven properties in Orleans and Jefferson parishes worth a combined $2,040,000, leased for $15,750 a month across nine units.
At 65% of value, the blanket loan is $1,326,000, with estimated principal and interest of about $9,272. Taxes total $1,800 a month, while insurance, including wind and flood, totals $2,700. The monthly payment is about $13,772, and portfolio DSCR is about 1.14x.
If the investor later sells the Mid-City double, its allocated loan amount is $292,500. Assuming a release price of 115% of the allocated amount for illustration, about $336,375 of the proceeds would go to the loan, and the other six properties remain financed.
| Property | Value | Monthly rent |
|---|---|---|
| Gentilly single-family | $265,000 | $1,900 |
| Gentilly double | $360,000 | $3,000 |
| Algiers single-family | $230,000 | $1,700 |
| Metairie single-family | $320,000 | $2,200 |
| Mid-City double | $450,000 | $3,700 |
| New Orleans East single-family | $210,000 | $1,650 |
| Marrero single-family | $205,000 | $1,600 |
| Total | $2,040,000 | $15,750 |
Here is how the two approaches compare for a typical metro New Orleans portfolio.
| Issue | Blanket loan | Separate DSCR loans |
|---|---|---|
| High insurance on one property | Absorbed by the portfolio | That property may not clear 1.0x |
| Parishes | Several parishes on one loan | Separate file per property |
| Selling one home | Release price at sale | Pay off that loan |
| Closings | One | One per property |
| Escrow | One payment covers taxes and insurance | Several escrows to track |
A release provision lets you sell one property by paying the release price set in the loan documents, usually based on that property's allocated loan amount. The remaining properties may need to still meet a minimum ratio afterward.
Investors here often sell renovated doubles in neighborhoods where values have risen, such as Mid-City or the Bywater, and keep lower-priced rentals with stronger cash flow. Model the portfolio after each likely sale. Our release clause guide explains the math. Selling the property with the highest insurance cost first can actually improve the remaining group's ratio, so it is worth comparing a few sale orders before listing.
Louisiana assesses residential property at a 10% assessment ratio, and investors do not receive the homestead exemption owner-occupants get. Orleans Parish has a single assessor and reassesses every four years, while Jefferson, St. Bernard and St. Tammany each have their own assessors and millage.
If a property was bought from an owner-occupant, its first full investor tax bill may be noticeably higher. Use current bills, adjusted for any lost exemption. Properties in different parishes also pay taxes on different schedules, which is one more reason investors like a single escrow that handles every bill.
Have these documents ready for every property in the group.
Owners who bought before recent price gains may be able to pull equity out with a blanket cash-out refinance, within the program's cash-out leverage limit and the portfolio ratio. Cash-out seasoning varies by program.
Some investors keep stabilized rentals on the blanket and use bridge or fix and flip loans for new purchases that need work, then add them at the next portfolio refinance. Keep reserves for storm season, since a single named storm can affect several properties at once. Insurance deductibles on several homes can add up quickly after a hurricane, and repairs can take months while rent is interrupted.
Our investor loans are business-purpose loans on non-owner-occupied property. Send your property schedule through the form below or call (877) 298-1001. We will run portfolio DSCR with your real insurance costs and model a release. For properties elsewhere in the state, see our Louisiana blanket loan page.
At least five investment properties, each with 1 to 8 units.
Yes. Properties in different parishes can be on one blanket loan.
No. The loan is qualified on combined portfolio cash flow.
Wind and flood premiums are high and vary widely between properties, so they often decide portfolio DSCR.
No. It applies only to owner-occupants, so budget taxes without it.
You pay the release price set in the loan documents, and that property comes off the lien.
Yes, within cash-out leverage limits and as long as the portfolio still clears the minimum ratio.
No. The portfolio's rental income qualifies the loan.
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