I'm a newbie here and my husband and I are constantly looking at real estate in Nashville, where we also live. We have a rental property in Franklin that was our previous home. We've been looking online (but not with our real estate agent or a wholesaler) to see what's out there. Is there anything out there anymore in Davidson/Williamson county that makes sense as hold & buy or BRRRR? Everything seems so over priced and the numbers don't add up.
Other concerns are:
-Buying while the market is too high. Our hunch is that Nashville won't be coming down anytime soon but we don't know
-Getting into a brrrr and not enough contractors to do the work (we've had enough challenges getting stuff done on our current home). Willing and able to do some sweat equity with the basics ourselves but not able to do plumbing, drywall, etc. on our own.
We are debating if we should just wait a year until we have enough cash to buy our next house and rent out our current one.
I'm finding that buying in outlying areas around nashville can still make sense. Madison, Hermitage, Donelson, etc have deals that still make sense. We bought a couple duplexes recently that cash flow well. If you need help with subs/contractors, I'd be happy to refer you some. Also, check out the nashville Rein page on Facebook. Lots of contractors and tradesmen on there too. Cheers
Don't worry about the market being "too high." Buy it well enough and the market being hot doesn't matter. Besides, your money in the bank is hotter than the market because you're lighting it on fire by not deploying it
I would develop a contractor and vendor list. When I started by own rehabbing, I obtained a list of over 200 subs
Waiting a year - again, sitting on the sidelines = losing money
I would send out direct mail instead of looking online. If you are seeing overpriced properties, that's fantastic. Offer them owner financing. Price is irrelevant if the terms are what you want.
Bottom line... you can find a good deal anywhere at any time if you're putting in enough work to find them. MLS, online.. those days are gone.
I am selling a property in Nashville and rolling it through a 10-31 exchange into properties in Williamson. I have been looking in Fairview and Thompson Station. Still high, but cheaper than Nashville and Franklin and people are flocking to Williamson County for the schools. I have one paid for rental here and never have had a vacancy of more than one day to clean between renters.
I am also hesitant to buy with the market as it is, but will have about $200k of taxable income when I sell if I don't roll it, so roll it I will!
Definitely try looking further out from the hot areas and don't rely on MLS. If you need calculators, BP has one if you are a paid member or I can give you one for free. Couple of things to do:
1) Go attend your local REIA and get a feel of the land and surrounding areas and see where others are investing
2) Find an area and start focusing there, start with driving for dollars and compile your own list. You're in a hot market so don't rely on cheap lists that are oversaturated
3) Do direct mail or door-knocking after role-playing the scripts on how to talk to sellers.
There are deals to be had in any market, just gotta work a bit harder and look a little further out from really hot markets.
Money is melting away in bank accounts with interest rates lower than inflation = purchasing power going bye bye. Protecting and building your wealth with smart investing is the way to go.
Thanks for the great advice everyone! I think we will start looking in to surrounding areas and taking a more active role in finding the right property. It's good to know there are still properties out there, just gotta put more work into it! Time to stop being lazy :)
It's so true that you're losing money having cash just sit in a bank. We were just debating that if our cash flow on our current house could be around $700 a month if it was worth it to wait. We wouldn't be able to do both - buy a rental property now and hold on to our current home when we want to move in a year or so.
@Ray Lai - I'd be interested in the other calculator you mention if you're willing to share!
@Ryan Stackhouse If you don't mind me asking, what area were those duplexes in that you recently purchased?
Hey James, I bought two duplexes in Madison and I'm getting an above 10% cap rate with renovations and raising rents to increase returns,
Deals there are hard to come by. Have you thought about investing in another market. Memphis is nearby and its great there right now.
I agree that deals are becoming harder and harder to find in the Nashville area. I would recommend doing some research in the area and finding what areas work for your budget.
Meetups are always a good place to meet people in your similar situation (Let me know if you need help finding these). I am also looking to invest in the Nashville area and the deals I have found usually only stick around for about a day before they are snatched up. If you are serious about buying I would be ready to move quickly in this kind of market.
@Ray Lai had some great advice about the REIA and not relying on the MLS. Off market right now has been where I have found the most luck.
If I can help in any other way please let me know! feel free to message me directly or shoot me text.