Flip vs. BRRRR (Nashville, TN)

2 Replies

Hey All,

I just wanted to pose a question out for everyone to get the pros and cons of this property that my partner and I are about to close on.

I know this gets posed a lot, but for this property itself, here are the details and numbers:

- Nashville, TN, $205,000 Purchase Price

- Agent Listed property as 3BR/2BA, but it is technically a 4/2.

- Rent for this area (not the greatest location) for a 3/2 range from $1500-1700 for this property. For a 4/2, $1700-2000. For a 4/3, $2000-2200. (Rough estimates)

- Recently renovated, no major upgrades needed. *We want to add a 3rd full bath upstairs for roughly $10,000.*

- Comparables for 4/3 are somewhere around $275k-$300k.

Please let me know what you think. Due diligence period is coming to an end here soon and what to hop on the bathroom addition ASAP. If you have any further questions, please let me know.

@Jack Montague what part of town is this in?  You said its not the greatest, but do mean resell or rent?  If it is not the greatest rentable area or ability to getting higher rental value then I would take the $85k and run.  If you feel like you can make on cash flow the rent as a 4/2 without doing the bathroom addition that would be a viable option as well. However if it is not that great of an area, the equity growth may not be there, so it might not make sense to hold in that particular area.  Sounds like a great opportunity to make $40k + and move on to your next investment or don't make any additions or rehabs and rent as is.

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