The New Orleans shotgun double is one of the most recognizable rental buildings in the country: two units side by side under one roof. Insurance and short-term rental rules drive more New Orleans deals than price does, so those come first in the math.
In short: For New Orleans investors, LendingStreet writes DSCR loans that use the property's rent to qualify, so no tax returns or W-2s are needed and the loan can close in an LLC. Loans start at $150,000 with no stated maximum, with up to 80% LTV on purchases, up to 75% LTV on cash-out and a 620 minimum score. Flood and wind insurance, the city's strict short-term rental rules and the loss of the homestead exemption on a rental are the New Orleans items to check first.
Mid-City, Gentilly, Bywater, the Marigny, the Seventh Ward, Treme, Broadmoor and the Irish Channel hold many of the city's doubles and small multi-unit buildings. Uptown and the Garden District are pricier. Algiers on the West Bank offers lower prices and a quieter rental market.
In Jefferson Parish, Metairie and Kenner have single-family homes and duplexes, and St. Tammany Parish across the lake, including Slidell, Covington and Mandeville, has newer suburban stock. Each parish has its own assessor, flood exposure and rules.
| Area | Typical rental stock | What to check |
|---|---|---|
| Mid-City, Gentilly, Seventh Ward | Shotgun doubles, raised and slab homes | Elevation, flood premium, condition |
| Bywater and Marigny | Doubles, cottages, small multi-unit | STR restrictions, historic review |
| Algiers | Single-family homes and doubles | Rent comps, flood zone |
| Metairie and Kenner | Single-family homes, duplexes | Jefferson Parish taxes, flood insurance |
A shotgun double has two long, narrow units sharing a center wall, and a camelback adds a second story at the rear. Many were built from the late 1800s to the 1920s on piers, which keeps them above street flooding, while many mid-century homes in Gentilly and Lakeview sit on slabs. Elevation matters for both flood risk and premiums.
Older homes can have original wiring, plumbing and Formosan termite damage, and many sit in local historic districts that review exterior changes. A clean inspection and termite report make underwriting smoother. Rents for well-kept doubles are often strong enough to clear 1.0x at 80% LTV, depending on insurance.
Louisiana assesses residential property at a fraction of fair market value and reappraises on a four-year cycle. Owner-occupants get a homestead exemption that rentals do not, so the investor bill can be higher than the seller's. Check the Orleans Parish assessor record and budget without the exemption.
Louisiana follows a civil law tradition, and closings are handled by a notary public, who plays a larger role than in most states. Ask the closing notary or title company for a cost estimate early, including any parish transfer or recording charges.
Insurance is often the largest swing in a New Orleans DSCR payment. Much of the city sits in mapped flood zones, and wind coverage after recent hurricanes has become expensive, with some carriers leaving the state and Louisiana Citizens serving as insurer of last resort. Get real quotes for both wind and flood before you set your offer.
New Orleans has some of the strictest short-term rental rules of any large city. Whole-home nightly rentals in residential zones are largely prohibited or tied to owner-occupancy and permit limits, and the rules have changed repeatedly. Investors should not underwrite a New Orleans purchase on nightly income unless the address clearly qualifies; other parts of Louisiana have different rules.
The city has also adopted a rental registration and inspection ordinance, though implementation has moved slowly. Most New Orleans DSCR loans are written on 12-month leases, and mid-term furnished leases to medical staff and film crews are common.
This example is illustrative and not a quote. An investor buys a raised shotgun double in Mid-City with both sides leased, after getting wind and flood quotes.
The purchase price is $395,000 and the rent is $3,400 a month. At 80% LTV the loan is $316,000, so the down payment is $79,000 before closing costs. Estimated principal and interest on a 30-year loan comes to about $2,156, and taxes and insurance add $860, for a total payment of about $3,016. Rent divided by that payment gives a DSCR of about 1.13x, above the 1.0x standard minimum.
| Item | 80% LTV purchase |
|---|---|
| Purchase price | $395,000 |
| Loan amount | $316,000 |
| Estimated principal and interest | $2,156 |
| Property taxes | $300 |
| Insurance | $560 |
| Total monthly payment | $3,016 |
| Monthly rent | $3,400 |
| DSCR | 1.13x |
A DSCR loan sizes the deal on cash flow. Rent is compared with the full monthly payment, including taxes, insurance and any association dues, and standard programs want that ratio at 1.0x or above. Sub-1.0 programs can help when the numbers land just under.
Small multifamily counts the rent from every unit: duplexes, triplexes and fourplexes, plus 5 to 8 unit buildings with leverage that varies by program. Properties with 9 or more units are commercial. Our Louisiana DSCR page covers investors buying elsewhere in the state.
Our investor loans are business-purpose loans on non-owner-occupied property. Start with the property address, price, rent and how much you want to borrow; we will size the loan against a realistic payment and send back options. Get a quote with the form below or call (877) 298-1001.
Only if the property can legally operate as an STR, and in most residential zones of New Orleans whole-home nightly rentals are restricted. Most DSCR loans here use long-term leases.
A lot. Wind and flood premiums sit inside the payment, so a high quote lowers the ratio dollar for dollar. Get quotes before you finalize the offer.
Yes. Doubles qualify on the combined rent of both units, and camelbacks and small multi-unit buildings work the same way.
The exemption only applies to an owner-occupied home, so a rental is taxed without it, which often means a higher bill than the seller paid.
Yes, up to 75% LTV, as long as the rent covers the new payment at the program minimum. Seasoning requirements vary by program.
Purchases go up to 80% LTV, so at least 20% down plus closing costs and reserves. Larger balances and 5-8 unit buildings can require more, and that varies by program.
No. The loan qualifies on the property's rent. You still need a 620 or higher credit score, reserves and entity documents if you close in an LLC.
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