I currently have 2 short term rental properties in Orange County, CA and am looking to invest in another, but prices are ridiculous here.
I've zeroed in on Nashville as a potential location to invest in a new short term rental property. Does anyone have experience in the area? I'd love to ask a few questions.
I am going through the same dilemma with trying to break into the Nashville short-term rental market. Also, you are potentially going to run into issues with metro regarding permits for a Nashville non owner- occupied str.
It seems short term rentals are booming here in OC. Good luck! @Pat Marin-Finn
I have a property that is pretty versatile in East Nashville (South Inglewood) that I currently use as a STR. It is originally a single family home, but the upstairs has a separate entrance so I rent it as two apts. There are currently permits available last I checked. I am giving serious thought on selling this summer/ fall. I do think you should definitely read up on pending regulations and permit requirements. This property is also zoned duplex so you could build another separate structure as the builder across the street is doing. Asking 420k. Again I have only done VR in Nashville and it is booming, but the word is out and everyone is wanting a piece. l think pending legislation, if passed, will ultimately cause many to get out which will lower competition. Codes has done a terrible job enforcing the laws and taxes they currently have, but we are starting to see non permitted properties bite the dust. A lot of arm chair host are starting to see the work that is required to maintain a permit (that they never held in the first place) and are getting out. Plus the taxes are pretty steep and take a large bite in your profit.
@Pat Marin-Finn I'm selling a brand new home right now as a turnkey Airbnb rental. Asking $420k.
Mgt in place, furniture, etc
@Pat Marin-Finn I have several STRs in Nashville and more to come. If you're looking to buy one, I have A LOT of new construction in the 400k range that you can generate 70-80k a year on with AirBnB. I also have the management in place already. Let me know if that is something you're interested in
Thanks for all the feedback.
Do any of you know of a reputable property management firm that handles Vacation Rentals?
Hey @Pat Marin-Finn , have you gotten a short term vaca rental in Nashville yet? Fyi Turnkey seems to be the best property management company for this- their commissions are 18%.
I want to do this but ran into a roadblock. The mortgage guy I’m working with said that short term rental income classifies as $0 income for Debt to Income ratio which doesn’t make any sense to me... Does anyone know of any lenders who’ll take say 75% of a conservative number and use that to classify as income?
Hey @Pat Marin-Finn
First off, welcome to Nashville! I think this a great market and near perfect time of year to get some skin in the game in Music City! I am a Realtor/Investor specializing in the Metro Nashville area; I got into my first house-hack last year and am looking to get 2 more income producing properties before 2020! I agree prices seem to be inflated due to overpricing which is causing properties to sit on the market for longer which in fact could be a good thing for the patient yet posed investor!
As far as STR's: I recently went to an agent-only panel held by my brokerage with representatives from our Metro Codes office and I will say that at the moment STR's are being pushed out of residential neighborhoods by the hotel industry. However, more and more developers are building with us in mind!
I work with a developer that's actively building STR friendly properties. Alloy, a unique community up on a hill, literally across the street from the soon-to-be new MLS stadium, with reaching downtown views, is in a burgeoning neighborhood feeling the heat of surrounding Nashville hot spots like Wedgewood-Houston (or WeHo as you may have heard). There are 3 story townhomes available built with investors in mind as they are 100% STR qualified.
Another development I know of is called Contralto, it is a condo community on Church Street, right smack in the middle of all the action Music City has to offer. There are about 10 studio units left, all of which are again 100% STR eligible!
I would love to help you find the best property(ies) for you that meets all your needs and satisfies your short and long term goals! Let me know if you'd like to talk more about investment strategies, the market, or Music City in general; I take it upon myself to be the one-stop-shop Nashville Tour Guide to every new pair of boots that touches down in my town!
Hey @Pat Marin-Finn , I have 2 STRs here in Nashville and have a great management company. But you'd be in good hands with @Luka Milicevic , @Devan Mcclish or @Katherine Hite if you decided to work with any of them. I also have an art business aimed at making custom art for Short Term Rentals specifically, so if you need decor once you've acquired your property hit me up!
But also just like Luka, Devan, and Katherine, I can also help you with acquiring a properly zoned property and get everything set up with management. Just thought I'd throw my hat in the ring as well!
Thank you so much for the kind words! I had no idea about your art business, what a cool concept! My house hack is screaming for some life I'd love to take a look at your work!
@Katherine Hite of course! No problem! You can check out the site here: timbercanvas.com. I can also sometimes do custom pieces as well!
Dope! I'll take a look!
Thanks for all the replies guys. We've decided to move on from STR's in Nashville given that the city seems to be fighting it pretty heavily
I am a STR investor who currently owns two properties in East Tennessee (Smoky Mountains) and I am seeking property in the Nashville area since my son and wife live in Brentwood (south Nashville) and a grand baby on the way. We would like to buy a STR with the idea of personal use as we visit grand children. Anyone out there who can help?
I have just found out that I am on going to be a grandfather and my son and his wife live in Nashville. I currently own two, five bedroom properties in East Tennessee (Smoky Mountains) as short term rentals and I am seeking an investment in the Nashville area. Nashville seems to be going through some turmoil for STR's. Should I avoid it all together? I am interested in $500K or less for STR properties.
@Gary Bridwell Congratulations on becoming a Grandfather!! I’ve got two boys aged 19 and 22 and hope to have Grandkids one day....just not too soon.
Nashville STR market is alive and well and I sell quite a few of them but you just have to work within the rules of the sandbox the city has laid out. It's actually easier to look at a city that has established legislation around it than one that hasn't. Almost all big cities are going to have some legislation at some point and it's nice to know you can buy within the rules than have the rules changed on you down the road after you've already bought.
When Nashville stopped issuing permits on residential non-owner occupied properties the developers took advantage of that ruling to start building smaller STR developments on commercially zoned property that the city encouraged. These developments are actually better alternatives since they typically are contained within themselves and don't disturb the neighbors like a residential non-owner occupied property would. These properties are also designed to maximize sleeping space and provide high end finishes and many times balconies, patios, rooftops, etc that Airbnb guests all love. They also generally are near walkable areas with lots to do and of course where you can promote you're within 5-10 mins of downtown, also known as "Disneyland for adults who like to drink and party" ;)
You just have to know where the opportunities are and that's where a good realtor comes in. Most of the better options are off-market and having solid connections with all the developers really helps. I've sold 6 of these in the past 2 months that never sniffed the MLS.
I just sent you a PM.
There's definitely still opportunity in Nashville for STRs. A little more navigation is required in order to get set up and make sure you are operating within metro guidelines.
I am an out-of-state owner and I have 3 STRPs currently there and all are doing very well. Id be happy to answer any questions or give you referrals.
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