Realtor · Mililani, HI · Member since 2017 · 107 posts · 47 votes
Aloha everyone. I have pivoted and am looking to invest out of state. I am really looking on feedback regarding the Spring Hill area of Tennessee. I'd love to stay in Williamson County but am open to Maury as long as I'm in a better area and keep my chance of responsible tenants on the higher side (I know there are no guarantees). I also am evaluating town homes and condos in the area vs. SFH's for rental demand and CCR. I've been doing my own research and am reading in between the lines a bit.
Why out of state? I am in Northern California and don't have the capital or the guts to invest here. I also plan to move sometime in the next 5 years so my local investment would become long distance anyway. My parents have been in Spring Hill for about 11 years and I have them as well as a small network of friends from visiting and networking through a Brazilian Jiu Jitsu company I used to own. I feel as comfortable assessing that market as I do my local one, except the stakes and cost to play are much lower.
Any advice, connections, and any other info is greatly appreciated.
Hey Derek, I live in Franklin (Williamson County) and I have to agree with Dani - Columbia does have a few commuters, but it is not considered part of the Nashville community. It is pretty much its own thing down there. Spring Hill, on the other hand, is definitively a commuting suburb of Nashville. A ton of the jobs here are South of town along the I-65 corridor as you mentioned in Brentwood and Cool Springs, and there is significant development going on at Berry Farms too (building a few million square feet of office space there over the next few years).
That being said, I don't invest in any rentals in Williamson County, so I can't really help you there. It is probably one of the greatest places on earth to live, but it is awful to build in and the cities and county are both notoriously annoying to work with. Anyway, I've been here about a decade, so feel free to ask me any specific questions about the area.
@Dani Beit-Or thanks for the reply. Are you looking at value adds? I've been to Spring Hill once or twice a year for the past decade and watched it grow as have I. Nashville commuters are still attracted to the area, especially families who want to be in Williamson County. Job market is strong and fairly diverse. You think it's too far out? I feel that way about Columbia (where the numbers seem to work a bit better) but local connections insist hat columbia is still within the nashville commuters range.
I will be in Spring Hill in July to visit family and look at properties.
I'd be looking for a single family on a smaller piece of land (big lots are common out there). Partial rehab is doable but I don't have a full team to take on a full rehab. Basically my parents may be able to manage a partial for me. I prefer Williamson County.
From what I can tell a 225k home off the MLS will rent for about 1600-1800/mo. Not great but not California bad. I am also looking st Augusta, GA. Do you have any experience in that market @Dani Beit-Or?
@Dani Beit-Or What type of investments are you working with in the Nashville Market? I have been looking at condos of late to provide STR cash flow but have been on hold since the City Commission legislation.
Any recs or input as to what has worked well for you in the market?
Spring Hill is a great area, @Derek Okahashi, I lived in Maury county for years. I tend to see more deals like that in Maury than Williamson, being just that much further out from Nashville. Rutherford is also a good place to look at.
@Derek Okahashi I'm not local but use locals. And from I can tell Spring Hill is acceptable distance from Nashville and Columbia is not , at least not yet.
I realize you were looking to possibly invest in Tennessee, but if you are wanting to passively invest, I would I highly recommend Texas. Especially to build a larger nest egg to invest.
The thing to remember is to check out who you are parding with and make sure you both agree to an exit strategy before you enter. You need to make sure that there is more than one way out.
I invest close to home, Hillsboro, TX and surrounding counties. It has worked well with me and the individuals I have parded with.
Unfortunately missed out on one nice multifamily, because who I was bringing in went around me and bought the property himself. (needless to say but he will not get the opportunity to invest again).
I recommend 2-5 year deals only. Not that an earlier out isnt possible if the profits are there.
Ron Flatt thank you for your reply. Can you elaborate on what you mean by 2 to 5 year deals? I mean, it sounds really nice to have several properties paid off in 15 to 20 years.
I am looking at Tennessee and Georgia because I have boots on the ground there. I have a better feel for the market until comfortable analyzing the locations and if any big cap X stuff comes up I feel like I have a trusted source there. I appreciate your reply and your next reply.
No problem. Always nice to know the yard you are playing in. That is why I make sure my investments are where I can lay eyes on them within an hour of my home.
Hey Derek, I live in Franklin (Williamson County) and I have to agree with Dani - Columbia does have a few commuters, but it is not considered part of the Nashville community. It is pretty much its own thing down there. Spring Hill, on the other hand, is definitively a commuting suburb of Nashville. A ton of the jobs here are South of town along the I-65 corridor as you mentioned in Brentwood and Cool Springs, and there is significant development going on at Berry Farms too (building a few million square feet of office space there over the next few years).
That being said, I don't invest in any rentals in Williamson County, so I can't really help you there. It is probably one of the greatest places on earth to live, but it is awful to build in and the cities and county are both notoriously annoying to work with. Anyway, I've been here about a decade, so feel free to ask me any specific questions about the area.
Sean Davidson where do you invest? I've heard that once you get in to Nashville it's tough to work through policies and red tape. I'll be in SH in July/Aug visiting family and looking at properties.
I invest in Nashville - I have a few rentals that I bought for comically low prices 5 years ago but I mostly work on urban infill and townhouse developments now. Nashville is slow because they are crazy overwhelmed, but I have found if you are an honest person doing business professionally, they have been very easy to work with. You simply need to plan for some delays of a few weeks each, especially with NES and Metro Water being involved.
Great thread, I just moved to Spring Hill about 6 months ago and like it. Plenty of people commute to Nashville from here. I invest in other areas but am interested in what is going to happen in Columbia over the next few years so I may scoop us some rentals down there as a longer term play as Nashville and the surrounding areas continue to grow.