Louisiana situation guide · Updated November 2026

Wholesaling Small Multifamily Properties in Louisiana

Wholesaling small multifamily properties in Louisiana means putting a duplex, triplex or fourplex under contract and passing that contract to a buyer for a fee. In New Orleans, those doubles are everywhere. Louisiana’s wholesaling law reaches one to four units, so every deal in this niche must follow it.

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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.

Small Multifamily Properties in Louisiana at a glance

LawAct 807 of 2026, adding R.S. 37:1448.5
Buildings reachedDuplex, triplex and fourplex
Seller walk-awayFive calendar days or more
Escrow floorOne percent of the contract price
Top civil fine$5,000 each violation
Local termParish, not county

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.

Two incomes

A double gives a buyer two rent checks, which widens your buyer pool.

Tired landlords

Owners facing repairs, insurance bills or vacancy often accept a quick sale.

Heir-owned buildings

Families who inherited a double may prefer a clean cash sale.

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.

Your checklist for wholesaling Small Multifamily Properties in Louisiana

  • Count the units: four or fewer.
  • Staple the LREC cancellation form to each contract.
  • Park the deposit in a Louisiana escrow account.
  • Record nothing that could cloud title.
  • Have a Louisiana attorney read your contract.

A Louisiana example: a Central City double

PropertyDouble in Central City, New Orleans
Contract price$185,000
Escrow deposit (1%)$1,850
Buyer price$197,000
Assignment fee$12,000
Seller cancel-by11:59 PM on day five

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

Is wholesaling small multifamily properties in Louisiana legal?

It can be, if you follow Act 807 of 2026 for one-to-four unit buildings: written disclosures, a five-day cancellation right, the statutory notice and a deposit of at least 1% in escrow. Broker license rules can still apply. Check current text and ask a Louisiana attorney.

Does Act 807 apply to a fiveplex?

The Act defines residential real property as one to four dwelling units, so larger buildings appear to fall outside that definition. That reading is not settled in court. Treat any building of five or more units as a question for a Louisiana attorney before you sign.

How much deposit does a Louisiana wholesaling contract need?

Act 807 reads as requiring at least 1% of the purchase price. On a $185,000 double, that is $1,850. The money must sit in escrow in Louisiana at a federally insured institution, or in the seller’s account. Confirm the wording on the current statute.

What happens if I skip a required disclosure?

The seller may void the contract at any time before title transfers. The violation also counts as an unfair trade practice and a License Law matter, with a civil penalty of up to $5,000 per violation. Check current text and get legal advice.

Can I record a memorandum of contract on a double?

Be careful. Act 807 bars wholesalers from recording any lien, encumbrance or other filing that clouds title on a small multifamily building. Whether a memorandum of contract counts is unresolved, so ask a Louisiana attorney before recording anything against the property.

Keep going

More Louisiana wholesaling guides

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