Nashville, TN · Member since 2017 · 7 posts · 1 vote
I'm ready to purchase my first investment and live in Nashville, but not sure how best to start. I have a pretty good chunk of cash to invest but relatively low monthly income. Trying to figure out what the best start would be and what would be a good next step after that. Should I buy a duplex that needs fixing and live in half? Should I buy a single family with cash that is rental ready further out of town? Should I buy in Chattanooga where I could buy with cash and have higher cash flow? Should I flip to get more cash to work with? Something else?? Thank you for sharing your wisdom and experience!
Rental Property Investor · Nashville/Chattanooga · Member since 2016 · 45 posts · 44 votes
9y
Hey Keri,
As for how to start, that is really up to you and your intended long-term/exit strategy. The one caution I will give you is that there is so much demand for multi-family properties in Nashville right now, that the cash flow numbers aren't nearly as appealing as they used to be. If that is the route you want to go, find a few potential properties and run some number on them. If you have any questions on them, throw the numbers to Bigger Pockets and get some additional opinions.
If you want some more feedback, try posting this in the local Nashville forum.
Investor · Cleveland, TN · Member since 2016 · 280 posts · 187 votes
9y
Just my opinion, and I'm fairly new, I would use it as a down payment on a Quad. Residential loan, low down payment, and, if you're patient and buy right, the first three units will let pay the mortgage, allowing you to save for the next asset. :) Terrible sentence, but you get the point.
Rental Property Investor · Nashville/Chattanooga · Member since 2016 · 45 posts · 44 votes
9y
Hey Keri,
As for how to start, that is really up to you and your intended long-term/exit strategy. The one caution I will give you is that there is so much demand for multi-family properties in Nashville right now, that the cash flow numbers aren't nearly as appealing as they used to be. If that is the route you want to go, find a few potential properties and run some number on them. If you have any questions on them, throw the numbers to Bigger Pockets and get some additional opinions.
If you want some more feedback, try posting this in the local Nashville forum.
Investor · Nashville, TN · Member since 2013 · 47 posts · 26 votes
9y
@Keri Potter Decide if you are going to buy wholesale and create equity through renovating or buy retail and fund the deal through conventional loans. That's a personal preference. If you choose option A, find every wholesaler in town and get on their lists. If B, go get pre-approved by a bank.
Sean is right if you're looking to house hack- Multifam in Downtown Nash is competitive right now. I'm looking at 3 properties today that are duplexes/triplexes and they BARELY meet the 1% rule based on asking price. You'll need to go out to the surrounding counties/cities to find a deal.
@Ryan Stahr, @Brandon Brown, @Sean Wilson clearly have a lot of knowledge about the Nashville area. I am trying to invest in the Nashville area and have seen some good deals with multi family and distressed properties.
I would try to not rely on the MLS to much and look for off market listings. I personally have found a few good flip opportunities in Hendersonville and Lebanon.
As far as inside Nashville proper lot plays with R6 zoning are something I always keep and eye out for.
I hope this helps! If you have another questions please call (phone number on my profile) or message direct.