Investor · Austin, TX · Member since 2015 · 3 posts · 0 votes
Hello! I am a real estate investor based in NYC. I have several single family homes in the Austin area. I want to move into multifamily homes (2-4 units, with preferably 3-4 units as a next step). I have identified Nashville as a possible area I would like to explore.
I was referred to a local Nashville agent who has been in the business since the mid-1980s always focusing on Nashville. This agent said that he would not recommend multifamily investing in Nashville because he said that the areas where the multifamilies are in are all dangerous areas that he would not recommend going to, with very questionable tenants.
I am NOT looking for the equivalent of a C or D class property. I would be curious to know if others agree with his assessment that the multifamily properties in the Nashville area are all in less than desirable areas? I am not familiar with Nashville but potentially would be visiting later this month. Thank you.
Lender · Philadelphia, PA · Member since 2018 · 58 posts · 17 votes
7y
If you really like Nashville, I have a friend buying SFHs down there. He fixes them up and then Air BnB's them out. Nashville is becoming somewhat of a bachelor/bachelorette and party city. Maybe that is something to look into. He seems to do really well with his investments.
Real Estate Agent · Nashville, TN · Member since 2018 · 123 posts · 74 votes
7y
Hey Elizabeth! I'm an investor and agent in the Nashville market specializing in investment properties, both STRs and LT (flips, BRRRR method, etc). Most affordable multi-family units in Nashville are in some sketchy areas but not always since there are some of those areas going through growth and renovation. That's also why you look outside of Nashville in the overall Middle TN area.
Several areas that have good opportunities. 2-4 doors and up and even some good numbers on mobile home parks. I’ll DM you.
Investor / Syndicator · Austin, TX · Member since 2015 · 366 posts · 220 votes
7y
Definitely a good move to transition SFH into cash flowing investments. But are you able to get decent deals your targeted market that gives you better than 10% cash on cash? I know it's very hard to do this in San Antonio right now, a traditionally cash flow market (Austin being the growth market).
Rental Property Investor · Miami, FL · Member since 2018 · 22 posts · 9 votes
7y
Hello Elizabeth, if when you run your numbers you add the professional management to your properties, assuming that you get someone local with a proven track record, you should NOT worry about C properties. They tent to pay a better return on your investment and like other areas, they appreciate with time.
Some of them, could be part of a revitalization program later on or be a part of what started in 2018, an "opportunity zone" that with time will paid off.
See if you can get an an agent that has experience with investors instead of end users. (you can find them in the local REIA's (real estate investors association) or advertising investment properties.
Good luck!
Note: We in Florida have sub-markets that produce a similar return to Austin and both states are NO-Tax.
(just in case you want to explore multi's in this area)
Lender · Philadelphia, PA · Member since 2018 · 58 posts · 17 votes
7y
If you really like Nashville, I have a friend buying SFHs down there. He fixes them up and then Air BnB's them out. Nashville is becoming somewhat of a bachelor/bachelorette and party city. Maybe that is something to look into. He seems to do really well with his investments.
Rental Property Investor · Gallatin, TN · Member since 2016 · 21 posts · 9 votes
7y
@Elizabeth Hansen I have lived in Nashville, and the surrounding areas my entire life.There are certainly some parts of town that multi-family homes are in less than ideal areas. However, depending on your budget there are some quickly up and coming neighborhoods that have a mix of flips, new builds, and multi-unit properties.
Nashville has multiple Universities within the county limits, as well as several major hospitals. There are always students, doctors, nurses and young professionals looking to rent in these areas.
As my age group started getting closer to, and into our 30s, many of my friends started moving to the collar counties (currently all of my properties are in Sumner County). These areas all have much lower property taxes than Davidson, and typically the public schools are ranked higher by the state.
You could look in Hendersonville or Gallatin, TN. They are building hundreds of new apartment complexes up here. Sumner Co. has lower taxes too. Davidson Co. is run by some crazy corrupt people in my opinion.