Looking for advice about rental properties in Nashville, TN

18 Replies

Hi everyone,

I'm a (new) out-of-state investor looking to potentially buy a rental property in the Nashville area. I would love to connect and discuss with people familiar with the area!

I've heard that the rental market is pretty strong and there are many neighborhoods that are up-and-coming. The specific areas I've been interested in (so far) are around Five Points (37206) and around Vanderbilt and Belmont Universities (37212). The area around the universities seem to have the highest rental properties and high demand, but the home prices are also quite high. It seems like East Nashville still has room to grow and still has a great rental market. When I visited a week ago, it seemed like there was a lot of rehab/reconstruction going on, but still many older homes that have yet to be turned. So the area around Five Points in East Nashville seems like it might be a good place to look, although I'm still on the search for good deals.

Does anyone have any thoughts on this or have any suggestions of where else around Nashville I might want to look at? Based on the growth, rental markets, and housing construction, it seems like a good place to invest. My main concern is that Nashville has been such a hot market recently, that housing prices have gone up quite a bit recently and it seems harder to find deals with good returns.

Also, does anyone have any good recommendations on property managers and contractors in the area? I'm looking to build up a really good team that I can trust, especially since I am out-of-state. I have some family out there that could help me check on things (like contractor work), but I really would like a team that I can trust to do a great job. If all goes well, I plan on buying many properties over the next several years, so having a good team in place would really benefit everyone involved.

I very much would appreciate any recommendations or advice about investing in the Nashville area! I would also love to network with anyone interested since I plan to really get into REI and buy several properties over the next few years! I am deep in the research phase and have much to learn from others!

Thank you!

In general, Nashville doesn't offer a lot of deals. Values are always going up, but they've been going up for a while. East Nashville has been super popular at least since I used to live there, and that was back in 2004-2005. Every friend I have moved there. Which means not as much room for growth (when it's already a hot spot...and my friends are only representing the general population). Vandy and those areas are long-popular. Five Points, maybe, but keep in mind that if you find somewhere in such a popular growth city that suddenly offers you cash flow, you might want to be sure you know why it's offering cash flow. i.e. how bad is the area? 

Personally, I would assume that if you're going to take the time to put a team together in a particular market, you'd probably want to invest in more than one property. You might be able to find a one-off property here or there in Nashville (although last I heard, everything is selling over asking and with bidding wars), but it's certainly not somewhere that you'd have a lot of access to as much inventory as you wanted. 

Nashville is an amazing city...one of my absolute favorites and I used to go to school there...but investing is harder there. My investment partner lives there and had bought a ton of stuff for himself, but even he's looking outside of TN for properties now. And he lives in Nashville.

Not trying to be a buzzkill, but make sure the deals are really there if you're going to put that much effort in!

Hi @Ali Boone , I appreciate the honest response! I was starting to feel the same way about Nashville. I've been searching for months and even took a trip there, but I can't find a good deal in the areas I have been looking into. I won't give up looking, but I'm keeping my options open and looking elsewhere too. Although, I heard commercial real estate might be a good investment in the area.

@Tyler Mau  you’re about 7-8 years too late. A 400k house near 5 points will rent for what.... 3000?? You’re losing money in Nashville if you want to rent. You can build and make money but there are very big fish already crushing that area. 

It’s not impossible but it is VERY difficult and you’ll need a lot of cash. Not sure why you picked top 5 hardest city to make money lol. I do feel Nashville is somewhat crash proof and that means a lot to some folks! Don’t get the wrong idea it’s not like it’s San Francisco but I am seeing 2/1s in not so desirable areas sell for 150k cash and they need to be gutted in most cases. The same house rents for 1200. Why are they selling for 150k cash? Because they’re getting torn down and 3 are built in their place. 

I’m sure @Avery Carl can find you some things with a little patience and I’ve got the numbers of plenty of PMs that do good work. 

Good luck! 

I don't know anything about commercial there. Keep me posted on what you find...will be curious.

What's your drive for Nashville in particular?

@Ali Boone I will definitely keep you posted. Besides things like growth and development, a major reason for my interest in Nashville is the connections I have there. I have a lot of family out there that know the areas well and I have great connections with contractors and a realtor. Being out-of-state, these things would really benefit me.

Originally posted by @Tyler Mau :

@Ali Boone I will definitely keep you posted. Besides things like growth and development, a major reason for my interest in Nashville is the connections I have there. I have a lot of family out there that know the areas well and I have great connections with contractors and a realtor. Being out-of-state, these things would really benefit me.

Oh, absolutely. Having a team goes a long way. AND, Nashville is never a bad place to have to visit. ;)

@Tyler Mau I would recommend checking out Clarksville (45 min to the NW of Nashville). There is considerable growth yet it is cheaper than Nashville. Lots of companies are building facilities there (i.e. LG, Google, AtlasBX). Might want to take a look. 

Hey Tyler,

Nashville is definitely a tricky area to find good properties, but I'm confident that my team and I can help you find some amazing deals in town. PM your contact information and more about what you're looking for so that we can better serve you. Looking forward to speaking with you! 

@Tyler Mau one area to check out is Murfreesboro about 30-40 minutes SE of Nashville. It is another rapidly growing city and home to MTSU, the largest college in Tennessee. However, you can get much more bang for your buck. Areas between Nashville and Murfreesboro (Smyrna, LaVergne, and certain neighborhoods in Antioch) are also great places that appear to be set to grow for years to come as people look to move further outside of Nashville. I've been looking and think there is potential for some decent cash flowing properties. I live in the area and would be willing to check out anything for you or even partner on a deal you find. Happy hunting.

I live in Murfreesboro and am really having a hard time finding opportunities here as well. Very competitive. I’m considering though looking at other suburbs like Eagleville, Wilson county, or other outlier counties if Nashville.

Great deals are coming in all the time from Clarksville, Dickson, Lebanon, Gallatin, and other surrounding areas. There are still plenty of deals out there despite what the naysayers say. Maybe not close to 5 points though...

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@Tyler Mau, it's a year later after your first post about rentals in East Nashville, Vandy & Belmont. The only change since last year is prices have gone up and good deals are harder to come by than before! Next year may be a little different with the slowing economy with anticipation of softer prices. Nashville is such a strong market, has been for decades, because of its economic diversification.

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