The Do's and Don'ts of Buying Investment Property
LOUISIANA REALTORS • July 17, 2017
Investing in real estate
can be a great investment. Not only can it grow in value over time, but it can also provide a continuing income source. However, as with any investment, it is important to understand the risks. Unlike the stock market, where you can invest in smaller increments, real estate requires a much more significant investment. Here are few things to make sure that you do, and few to avoid before you buy your first investment property.
Do Make Sure an Investment Property is For You
Owning a second home means even more responsibility, especially when it comes to repairs and maintenance. Handling these tasks yourself can save a lot of money. It’s important to consider the extra time and cost of owning a second property before you commit.
Don’t Try and “Flip” a Property
While this may seem like a fun way to turn a profit, at least for your first investment home, this is not a good idea. The cost of doing a major overhaul on a property can easily get out of hand, making it even more difficult to get your money back from a rental or even a sale.
Do Hire a REALTOR®
Just as you would with your primary residence, seek the knowledge and expertise of a REALTOR®. Understanding market value is crucial when it comes to investing and knowing what areas are growing, and what areas aren’t can position you for a successful investment. REALTORS® also have strong professional networks. Mortgages for investment properties are different than for your primary home, so having access to mortgage brokers, banks, and other professionals can help you get the best deal.
Don’t Underestimate Your Margins
Obviously there will be costs associated with owning this second property and it’s vital to understand them all to ensure that you are earning a return on this investment. HOA fees, insurance, and maintenance will all eat in to your bottom line. It is also a good idea to budget, save, and plan for any major repairs and for vacancies when you won’t have a revenue stream, but will still have these obligations.
Investing in real estate can be fun, exciting, and lucrative. Before you jump in feet first it is important to understand the ins and outs of owning an investment property in terms of everything from responsibilities, liabilities, costs, and management.
Learn how to lower your debt-to-income ratio before buying a home in Louisiana and why working with an experienced real estate agent can help.
NAR is pleased to share the latest new consumer guide, “Overcoming Roadblocks to a Sale or Purchase,” which helps buyers and sellers prepare for the most common potential pitfalls so their transaction closes smoothly. As a reminder, all guides in this series are available for download—in both English and Spanish—on facts.realtor . Please allow up to two weeks for the Spanish version of the latest resource to be translated and uploaded. For ease of reference, below is a list of the most recent guides: NEW: Overcoming Roadblocks to a Sale or Purchase How Solar Impacts a Real Estate Transaction Navigating Interest Rate Shifts Financing a Renovation When You Buy Staging Your House for a Sale Thank you for your continued engagement with the “Consumer Guide” series and for sharing the resources with prospective clients to ensure they have the information they need to find success in their home buying or selling journey. Remember that these guides are for informational purposes only and are not meant to enact or change any existing NAR policy. On June 3, we’ll have a new consumer guide on unpacking after a move and a refreshed guide in the value of MLS.
Louisiana REALTORS® remained deeply engaged during Week 11 of the 2026 Regular Session as several priority bills moved into the final stretch of the session. With adjournment approaching, the focus has shifted from early-stage committee positioning to Senate floor votes, conference committee negotiations, and final action at the Governor’s desk. This week, the biggest development was HB 468 by Rep. Troy Hebert moving into conference committee after the House rejected Senate amendments by a 91-0 vote on May 20. At the same time, HB 1027 and HB 292 remain positioned for the Governor’s signature, HB 1166 and HB 1187 moved into Senate floor posture, and Louisiana REALTORS® continued defensive work on HB 617 and HB 750 to keep real estate, property management, and nonprofit activity from being swept into overly broad consumer-protection language. The most immediate priority now is HB 468 , the residential wholesaling bill, which remains the last major Louisiana REALTORS® package bill in active negotiation. The bill passed both chambers unanimously on the underlying policy, including House final passage 96-0 and Senate final passage 34-0 , but differences in amendment language still have to be resolved before adjournment. The House's rejection of Senate amendments did not kill the bill; it simply sent it to a conference committee, where conferees must now reconcile the two versions. This remains a critical measure for the industry because it brings greater transparency and accountability to residential wholesaling, strengthens consumer protections, and gives the Louisiana Real Estate Commission enforcement authority over the new framework. Another major win for the industry is HB 1027 , also by Rep. Troy Hebert , which has now completed the legislative process and is awaiting the Governor’s signature. The bill passed the House 90-0 , passed the Senate 35-0 , and was sent to the Governor on May 14. This measure provides important liability protections for real estate appraisers in certain circumstances and represents a strong legislative win for transaction certainty, appraisal professionalism, and fairness in the marketplace. On disclosure and property management issues, HB 1166 by Rep. Kim Carver remains one of the most important real estate bills still moving. The bill, which requires disclosures for vacant residential property, cleared the Legislative Bureau without amendment and was scheduled for final passage in the Senate on May 21. If passed by the Senate without amendment, it can go directly to the Governor. This bill remains important because it closes an existing gap in Louisiana law regarding vacant residential properties and should help reduce late-stage surprises related to condition issues, access problems, utility status, and other material facts that can derail transactions. HB 292 by Rep. Delisha Boyd , dealing with the return of security deposits, is already at the Governor’s desk and remains another meaningful property-management bill nearing final enactment. Insurance remained front and center in Week 11 as well. HB 1187 by Rep. Paul Sawyer , dealing with Louisiana Citizens for emergency assessments, cleared the Senate Legislative Bureau and was scheduled for Senate final passage on May 21. HB 759 by Rep. Gabe Firment , relating to fortified roof endorsement offers, was also in Senate floor posture. These measures continue to matter because insurance affordability, mitigation incentives, and policy stability remain central to homeownership, transaction viability, and broader housing-market confidence across Louisiana. Other insurance-related bills, including HB 408 on nonrenewal protections for homeowners who timely mitigate risks and HB 1210 on pre-suit claim review for residential property insurance, remain low-movement items but remain relevant to the broader insurance affordability discussion. Week 11 also required continued defensive work by Louisiana REALTORS®. HB 750 , dealing with automatic renewal subscriptions, remained on the Senate floor subject to call, and HB 617 , dealing with hidden fees, remained in a posture requiring close monitoring. Louisiana REALTORS® has worked to prevent both bills from being interpreted or applied in ways that would improperly include leases, property management agreements, association activity, nonprofit operations, or real estate professionals within frameworks that do not fit the realities of housing and real estate transactions. On HB 617 , the concern remains that broad fee-disclosure language can unfairly place liability on real estate professionals for charges they do not control, including fees set by lenders, title companies, insurers, government entities, or other third parties. However, our governmental affairs team successfully negotiated an amendment on the House side that exempted real estate transactions from this legislation. The bill died in the Senate Commerce Committee this week. On HB 750 , another bill that includes an exempting clause for real estate and property managers, the concern is that broad automatic-renewal language could bleed into leases, property management, and nonprofit or association activities if not carefully limited. This defensive block-and-tackle work has mattered because late-session consumer bills can create real unintended consequences if left unchecked. Broader property rights, housing, and tort reform bills also continued moving. HB 214 and HB 217 , both dealing with tax exemptions for rehabilitated blighted or derelict property, advanced through the Senate and remain part of the broader redevelopment and neighborhood revitalization conversation. HB 472 , the rent stabilization bill, remains stopped after being involuntarily deferred earlier in the session, but it stays on the watch list for any attempt to revive similar language through another vehicle before adjournment. On the civil justice side, HB 437 on expert witness fees and HB 1089 on CARE Accounts remain active and relevant to the broader insurance-cost and litigation environment affecting property owners and small businesses. Additional housing-related bills, including HB 297 on early lease termination for stalking and cyberstalking victims and HB 300 on appraisal thresholds for bank-owned property, are also near the finish line and remain part of the broader policy picture. The bottom line for Week 11 is straightforward: the session is now in its final stretch, and several Louisiana REALTORS® priorities are either on the Governor’s desk, on the Senate floor, or in late-stage negotiations. HB 468 is now the top late-session advocacy priority because it must emerge from the conference committee and receive final approval from both chambers before adjournment. At the same time, HB 1166 , HB 1187 , and HB 759 were all in Senate floor posture, while HB 1027 , HB 292 , HB 297 , and HB 300 remain in executive-approval posture. Louisiana REALTORS® will remain ready for fast movement, late-session amendment strategy, and defensive monitoring through final adjournment, especially on bills affecting real estate transactions, insurance affordability, property management, private property rights, and housing supply across Louisiana. Please view the weekly bill tracking report provided by our lobbying team over at Harris, DeVille and Associates.
