Getting started living in Nashville, TN

7 Replies

Hey everyone,

I'm a newbie real estate investor eager to get started. I've been self educating through books, podcasts, and of course bigger pockets forums for the last 6-8 months. I feel that I'm in good position to make a move when the right deal comes along and I feel comfortable and ready. I'm primarily interested in single family home rentals either rent ready or a potential BRRRR opportunity. My vision is to start with single family rentals (up to a 4 plex) and eventually scale into multi family apartments or commercial one day. The biggest roadblock to getting started in my market is the high entry price to get a property. Prices in Nashville, TN, and surrounding areas are pricey compared to other markets. Would anyone recommend partnering on a deal locally or consider investing remotely in a relatively turn key rental property in a more affordable market using property management? Ideas, personal experiences and suggestions welcome!

@Aaron Kyle Kinslow

Your search criteria is both extremely wide and contradictory. Rent ready and BRRRR are complete opposite ends of the spectrum. The Nashville market and the surrounding areas are completely different than any other market.

I would recommend you narrow down your exact market, your buying criteria and what it is that you are looking for and start there. That way you actually know what you are looking for. 

Nashville is still cheap compared to other large metro areas and there are still deals to be found. In any market in the country right now you have to work hard to find a deal, that won't change if you invest locally or out of state. 

Hey Aaron, congrats on get ready for the next step! I second everything Luka said, clarity is key.

Do you have a primary residence already? If not, I'd consider looking into a FHA 203k loan. The game changer with this loan is you can bundle in the mortgage AND renovation costs into one.

My wife and I are using a FHA 203k loan to buy a duplex in Oak Hill with only 3.5% down. The 203k loan will actually allow you to buy up to a quadplex AND use the rent from the other 3 units to add to your income. The key with this loan is it must be owner occupied for at least a year.

@Luka Milicevic

I can see how you think it's contradictory and a broad statement. What I meant, however, is that I'd be open to starting either way. Honestly, for my personal situation, rent ready turn key properties is what makes the most sense given I'm a busy medical professional putting in 50-60 hour work weeks. I just mentioned BRRRR because of the initial boost it could provide but realistically probably don't have the time for it without contracting out the whole project.

That being said, I am currently looking for my first rental and would love to hear how you or others got started. Strategies, locations, etc.

We do own a home that we currently live in. Had I been more educated about real estate investing about a year ago we probably would have house hacked as our first home.

Currently, I’m just saving and looking to buy another property with 20% down and conventional financing. Again, rent ready would suite my situation best. I see that you’re both an agent and investor. Do you own property in Nashville? Would love to hear more about it. Thanks for your response.

@JP McLeod

Thanks for your response JP. That's a really awesome and creative way to get started. We do own a home already. If I had been more educated on real estate investing a year ago we probably would have house hacked as well. Very powerful way to get started with REI. Right now, I believe looking for relatively turn key rental properties with minimal upgrades/repairs is what suited our situation best.

Thanks Aaron, we're excited to get started on our house hacking journey.  

What's the possibility of you house hacking in a new primary residence and making your current home a rental?  Would the #'s work with cash flow?

Just thinking out loud..

Originally posted by @Aaron Kyle Kinslow :

@JP McLeod

Thanks for your response JP. That's a really awesome and creative way to get started. We do own a home already. If I had been more educated on real estate investing a year ago we probably would have house hacked as well. Very powerful way to get started with REI. Right now, I believe looking for relatively turn key rental properties with minimal upgrades/repairs is what suited our situation best.

In that case, it makes sense to have a turnkey operation instead of the added stress of rehabbing. Nothing wrong doing turnkey.

I have investors that are buying houses here in Nash that don't want any work because they are out of state. It all depends on the persons situation. The other thing to consider right now is trades jobs are in such high demand that finding good work and getting it scheduled is TOUGH. 

I own rentals in the Nashville area and surrounding area. I do development and represent buyers and sellers as an agent as well. 

Let me know what specific questions you have about the market and I'd be happy to answer them. Shoot me a PM if you want to talk more. 

 

Hi @Aaron Kyle Kinslow , There's so many submarkets in Nashville. I invest on the southeast side of Nashville since there's lower barrier to entry. Combine that with knowledge and patience, you'll find homes that will cashflow after expenses.  

Personally, I have a few townhomes in LaVergne, and one in Murfreesboro. Murfreesboro appreciation has been high, so the cash flow opportunities are low unless you find off market deals. LaVergne has yielded reliable cash flow even at retail pricing. Pretty much along the I24 corridor on the SE side has been my market. 

As inventory has been dropping, I've been considering other markets. Personally I've been looking into Clarksville(cash flow, decent inv turnor, lower apprec), Chattanooga(cash flow and moderate apprec, risk of flood insurance in some pockets), north AL, some pockets in KY. 

With all that said, cash flow is my criteria currently. Looking for a quadplex currently so I'll likely need to cast a wider net(FL, TX, OH).

You're only going to fail in real estate if you stop, so keep going. Continue to learn your markets, analyze properties, and build your teams(local and remote).

Hope there's something in there that provides value.