Wholesaling Small Multifamily Properties in Louisiana

The short answer

Does Louisiana wholesaling law cover duplexes, triplexes and fourplexes?

Yes. Act 807 of 2026 (reported as effective August 1, 2026; confirm on legis.la.gov) defines residential real property as one to four dwelling units, so a duplex, triplex or fourplex in New Orleans falls inside it. Larger buildings fall outside that definition, but check current text with a Louisiana attorney.

Act 807 added R.S. 37:1431(35)-(37) and R.S. 37:1448.5 to the Real Estate License Law. A small multifamily deal is not an exception. The same written disclosures, the same cancellation window and the same deposit apply to a double in Gentilly as to a single-family house. Read our legal overview and assignment guide first.

The bigger the building, the more the buyer cares about rent rolls, leases and tenants who already live there. Your contract should say what you know and what you do not. Our tenant-occupied property guide shows how to handle occupied units, and the cap rate guide explains how investors price income.

The opportunity

Why New Orleans doubles suit wholesalers

Orleans Parish has a large stock of shotgun doubles and small fourplexes, many held by older owners or heirs. Neighborhoods such as the 7th Ward, Central City, Gentilly and Algiers have blocks full of them. Investors like the second rent check, and a tired landlord often wants out of repairs and insurance bills. Check each building against code violation records and absentee owner lists to find the motivated ones. Flood zone and insurance cost shape what buyers will pay, so ask early.

Lead sources

Where to find small multifamily leads in Orleans Parish

• Absentee owners. Mailing addresses that differ from the building point to landlords who may be tired. See skip tracing.
• Code enforcement. Blight and violation notices flag buildings the owner may not want to fix.
• Heirs. Inherited doubles often sit idle. Our heirs’ property guide explains the title issues.
• Vacant units. A fourplex with two empty units shows weak cash flow.
• Direct mail. A plain note to owners can work. See direct mail for wholesalers.

Your exit

Who buys small multifamily deals in Louisiana

Local landlords, house-hackers who plan to live in one unit, and out-of-town investors buy these buildings. Ask each buyer for a buy box: unit count, rent target, neighborhoods and maximum repairs. A buy box keeps you from sending a fourplex to someone who only wants houses.

Financing matters. Some buyers use DSCR loans, which lenders size from rent, not income. Those buyers want solid lease numbers and a clean estoppel from the seller. Ask for proof of funds before you sign anything with them.

Step by step

How to start wholesaling small multifamily properties in Louisiana

1. Count the units. Confirm the building has four or fewer dwelling units before you rely on Act 807 language.
2. Request rents and leases. Ask the owner for current rents, lease terms and any unpaid balances.
3. Make the written disclosures. Hand over the intent-to-assign, legal-advice and cancellation notices before the seller signs.
4. Run the numbers. Use the ARV calculator and the MAO calculator, then check income with the NOI guide.
5. Sign and escrow the deposit. Include the notice, the cancel-by time and the 1% deposit held in escrow.
6. Market the contract. Send the deal to buyers whose buy box fits, with rents and photos.
7. Close through title. Use an investor-friendly title company that knows Louisiana’s rules.

This worked example uses made-up numbers. A retired owner in Central City wanted to sell a vacant side of a double after a long repair fight. You handed her the written disclosures, explained that you meant to assign the contract, and attached LREC’s cancellation form.

She signed at $185,000, with $1,850 placed in escrow. Five days passed with no cancellation. Your buyer, a local landlord, agreed to $197,000 and took over the contract.

You earned a $12,000 assignment fee. The seller closed at the price she signed, and no lien or memorandum was recorded against the building.

Louisiana rules to know

Act 807 rules for small multifamily wholesalers

Before each contract, Act 807 reads as requiring you to tell the seller in writing that you intend to assign or resell for a higher price, that the seller should get legal advice, and that the seller can cancel for any reason for at least five calendar days. The contract must carry the statutory notice beside the seller’s signature, with a cancel-by date and time of 11:59 PM, and LREC’s cancellation form must be attached at no cost.

Each wholesaling contract needs a deposit of at least 1% of the price, held in escrow in Louisiana or in the seller’s account. A missing disclosure makes the contract voidable by the seller until title transfers, and a violation can bring a civil penalty of up to $5,000. How it meets the owner exemption in R.S. 37:1438 is still an open question, so ask an attorney. See our license guide.

Learn it with a mentor

Get a second set of eyes on your first double

Small multifamily deals carry more moving parts than houses. Bring your contract and rent roll to a mentorship call and we will walk through them with you.

FAQ

Small Multifamily Properties in Louisiana: common questions

Keep going

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