Nashville, TN 2/2.5 for $77.5k

5 Replies

Hello all. 

I have not posted to the forum in years. I moved to Nashville, TN, one of the hottest markets I have ever seen, and have been renting for the past few years. I saved up for a down payment, and decided to buy a property to house-hack and, after 1-2 years, fully rent out as I move into the next property in the future. 

There is not a lot of value below $100k in this market. I lost out of 5 properties due to other individuals paying much more than I valued the property. I found a property and am just posting the specifics on here mainly for myself. 

Two story, two bedrooms, two one half bath townhouse with driveway, long lot, no HOA, vinyl siding, back yard deck, in Antioch, TN (off of Anderson Lane), about 15-20 minutes to the Downtown Nashville, TN area. Carpet needs to be cleaned, new flooring in the kitchen and downstairs area. Already has backsplash, tiled countertop, tile floors in bathrooms. I would be getting about $450 for renting the additional room, which means my costs per month will only be mortgage, taxes and insurance, which would be about $100.00 cost of living to me. We would split utility costs, and internet. I'm excited about this as this will allow me to add value to the property, and put more money away for the next property. This will work for me, as I am single and can get along with any person. This is not used to find a roommate!

I estimate ARV with other sales in the area as $105k after some improvements, and should be able to get around $1,100.00 per month. This is close to the 50% rule, and about 1.5%.

My goal is to do this every two years, while occasionally purchasing a stricktly investment property that is already rented or ready for rent at a discount. This will be house # 4, and I am doing pretty well with building equity on my rentals.

If you read this, I appreciate your time. I am looking forward to finding better deals nearby this area that will meet the numbers much better and bring better cashflow, but I'm also trying to have a mindset that the "hot" market will bring a better return over time than other not so hot markets where the numbers make more sense. 

Thank you!

Matthew

@Matthew Henry welcome BACK to the forums! 

Where are your other 3 properties located and how are they doing? You said you lost out on 5 properties because someone was willing to pay more. I've lost out on about 100 for the same reason and I'm perfectly okay with that. I have my numbers and if someone wants to pay more then that's on them. 

Antioch definitely has nice homes that are affordable and are on the MLS. I don't know much about it but I remember looking for my first home and you could get a lot of house out there.

Luke Milicevio,

Thank you for the reply. 

My other three are in Huntsville, AL, where I am from. They are good rentals, with the smallest at 3/1 and 600 sq ft the most profitable. I have learned alot since beginning my real estate investing.

Thank you for making me feel better about the houses I didn't get...or want for those prices. I think I just felt bad for wasting the agents time, as I didn't use him for the FSBO.

I am an Accountant as well, and hope to continue purchasing profitable property to build a portfolio I can be proud of. 

Nice. Keep chipping away. If you feel like you wasted the agents time, you can always get your own license! I know what you mean, sometimes I feel like I am asking my agent too many questions!

@Matthew Henry , being an agent - it can be an ugh feeling...but - it's part of the game.  If they are giving you grief about it, good time to find a new one that understands and more willing to work FOR you as they should be.  I'm happy to answer questions, and (try to) understand if the numbers don't work then they don't work, plus it helps me grow more familiar with areas if I'm having to run comps.  If they have been helpful and patient, you could always repay them by leaving a good review, giving them a referral, or using them for the NEXT purchase :)  But, even though the 'seller' is paying for the RE commission - you're really the one paying in the end, and you shouldn't feel bad asking for their services!


Christy,

I do not feel bad asking for services, just want to use him at some point. Part of the issue is the agent is family. Thankfully, the deal I bought is a good one and he completely understands. In the properties I have purchased, I have yet to use an agent, although I know how helpful they can be with sharing experience around the area. It is good to hear another investor friendly agent exists, especially in my hometown!