Looking to buy my first investment property

Murfreesboro, Tennessee
Starting Out
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Looking to buy my first investment property

Joshua Stevens
Member since 2026 · 1 post · 2 votes

Hi, I’m new to the forum. I live in the greater Nashville area and I hope to have the capital for my first investment property in 2028. I’m looking to get something in Sumner county, Hendersonville, Gallatin or down in Murfreesboro.

I’m looking to buy new construction single family home to minimize the maintenance stuff that comes up early and would love to get as much feedback as I can about my plan including potential holes in my logic, preferably from folks who have made similar investments.

I would like to start with something in the $400k range with 20% down and I don’t expect to have positive cash flow right away, as long as any negative cash flow is going into principal or coming back in tax benefits.

I hope to get started at a good price. If my first offer gets accepted then I’ll worry that my offer was too generous. With this being a buyers market my first thought is to pick half a dozen properties that I like and offer somewhere between 15 and 18% below asking price to see if I get a bite, then recycle the list a few thousand higher. Is 15-18% too low, too high?

I’ve read that there can sometimes be auctions and discounted leftovers in new construction neighborhoods. Do any of you have experience with that or know where I could find more information on something like that?

Are there any real estate investing clubs in the greater Nashville area that any of you would recommend?

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Michael Eskenasy
Investor · Pacific Northwest · Member since 2026 · 538 posts · 314 votes
2mo

I’d challenge one part of the plan before worrying about whether 15–18% below asking is the right opening offer.

Negative cash flow is still negative cash flow even if some principal is being paid down or you receive a tax benefit.

Principal reduction builds equity, but it doesn’t replenish the checking account that has to cover a $600 monthly shortfall, vacancy, management, insurance increases or a tenant turn. And I wouldn’t underwrite a deal around tax benefits until you know exactly how they apply to your situation.

New construction can absolutely reduce early maintenance uncertainty, but I’d make the property earn its way into the portfolio on realistic rent, expenses and financing rather than assuming appreciation will eventually rescue the spread.

On the acquisition side, I also wouldn’t anchor to “15–18% below list.” With builders, the sticker price often isn’t the real negotiation surface.

A builder may protect the recorded sale price because cutting it hurts future comps, while being much more flexible on:

  • closing costs
  • rate buydowns
  • upgrades
  • lot premiums
  • appliances
  • HOA credits
  • completed spec inventory

That means a $400K house at $400K with a large financing concession can sometimes be economically better than buying it for $365K with standard financing.

The inventory I’d be most interested in is completed or nearly completed spec homes that the builder is carrying, particularly around quarter-end or year-end. That’s where holding costs and internal sales targets can create a motivated seller without anything being wrong with the house.

One other thing: since you’re targeting 2028, I’d use the next year-plus to build an underwriting model around the exact neighborhoods you mentioned. Track asking price, actual closing price, concessions, achievable rent and days on market. By the time you’re ready to buy, you won’t have to guess whether 15% is aggressive. You’ll know what builders have actually been accepting.

Don’t optimize for getting a discount. Optimize for buying the future cash flows at the right basis.

You’ve got enough runway here to build this properly before capital is at risk. If you want to connect on the underwriting side of it, I’m happy to.

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  • Michael Eskenasy
    Investor · Pacific Northwest · Member since 2026 · 538 posts · 314 votes
    2mo

    I’d challenge one part of the plan before worrying about whether 15–18% below asking is the right opening offer.

    Negative cash flow is still negative cash flow even if some principal is being paid down or you receive a tax benefit.

    Principal reduction builds equity, but it doesn’t replenish the checking account that has to cover a $600 monthly shortfall, vacancy, management, insurance increases or a tenant turn. And I wouldn’t underwrite a deal around tax benefits until you know exactly how they apply to your situation.

    New construction can absolutely reduce early maintenance uncertainty, but I’d make the property earn its way into the portfolio on realistic rent, expenses and financing rather than assuming appreciation will eventually rescue the spread.

    On the acquisition side, I also wouldn’t anchor to “15–18% below list.” With builders, the sticker price often isn’t the real negotiation surface.

    A builder may protect the recorded sale price because cutting it hurts future comps, while being much more flexible on:

    • closing costs
    • rate buydowns
    • upgrades
    • lot premiums
    • appliances
    • HOA credits
    • completed spec inventory

    That means a $400K house at $400K with a large financing concession can sometimes be economically better than buying it for $365K with standard financing.

    The inventory I’d be most interested in is completed or nearly completed spec homes that the builder is carrying, particularly around quarter-end or year-end. That’s where holding costs and internal sales targets can create a motivated seller without anything being wrong with the house.

    One other thing: since you’re targeting 2028, I’d use the next year-plus to build an underwriting model around the exact neighborhoods you mentioned. Track asking price, actual closing price, concessions, achievable rent and days on market. By the time you’re ready to buy, you won’t have to guess whether 15% is aggressive. You’ll know what builders have actually been accepting.

    Don’t optimize for getting a discount. Optimize for buying the future cash flows at the right basis.

    You’ve got enough runway here to build this properly before capital is at risk. If you want to connect on the underwriting side of it, I’m happy to.

    1Reply
  • Michael Eskenasy
    Investor · Pacific Northwest · Member since 2026 · 538 posts · 314 votes
    2mo

    Send me the address 🤓

    0Reply
  • Dan HandfordPro Member
    Investor · Lexington, SC · Member since 2018 · 779 posts · 501 votes
    2mo

    Joshua, the long runway to 2028 is an advantage because you can build evidence before committing capital. I would track completed builder sales, concessions, achievable rents, lease-up time, taxes, insurance, HOA costs, and management in each target neighborhood. New construction may reduce early repairs, but it does not remove vacancy, rent competition, or the need for reserves. I would also separate principal paydown from cash flow because principal does not cover a monthly shortfall. Rather than choosing a fixed percentage below asking, compare the entire economic package, including rate buydowns and closing credits. What monthly shortfall and vacancy period could you comfortably carry without depending on tax benefits?

    1Reply
  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · Sarasota, FL · Member since 2017 · 5k+ posts · 3k+ votes
    2mo

    Joshua, for a first rental I’d be careful about using “negative cash flow that goes toward principal” as the main justification for the deal.

    Principal paydown is valuable, but it doesn't help you cover repairs, vacancy, insurance increases, HOA changes, or other surprises. I'd want the property to be close enough to breakeven that you're not depending on appreciation or mortgage amortization to make the investment feel worthwhile.

    Since you're targeting new construction, I'd underwrite more than just the purchase price and mortgage. Builder incentives can make the financing look attractive, but I'd still include realistic property taxes after reassessment, insurance, vacancy, management, maintenance, and reserves. New construction can reduce some early repair risk, but it doesn't eliminate the need for CapEx planning.

    On the offer strategy, I’d personally start from what the property is worth to you based on your required return, rather than picking a blanket 15–18% discount and applying it to every listing. If the deal only works at a certain number, that gives you your ceiling.

    From the tax side, once the property is placed in service as a rental, depreciation starts and cost segregation may be worth evaluating. But I’d treat the tax benefit as upside rather than something that makes a weak cash-flow deal acceptable.

    For a first property, I’d rather see you buy something boring that survives conservative assumptions than stretch for a deal that only works if everything goes right.

    Happy to connect and share some of our resources that might be helpful!

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    1Reply
  • Xavier Milsoni
    Member since 2026 · 32 posts · 4 votes
    1mo

    New construction is a fair instinct for a first rental, though you pay a premium and the rent in those suburbs doesn't always cover it at 20% down. We built with West Homes, they cover TN along with VA and NC, and there was more room on incentives than on the asking price, rate buydowns and closing credits mostly. The 15-18% below asking is optimistic on a new build, so ask what they'll throw in instead.

    0Reply
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