All Forum Posts by: Jacob Gomes
Jacob Gomes has started 8 posts and replied 65 times.
Post: How to find a market?
- Real Estate Consultant
- Nashville
- Posts 70
- Votes 22
You want to look at how attractive the city is throughout the year. How many pro sports are there? How many cities are in a 4 hour drive of that market, making the destination doable for a weekend getaway? Are there companies moving there that will need corporate rentals?
You also want to take into account supply dynamics. For instance, I operate in Nashville, TN. All of the residential airbnbs that are in the market now will eventually get taken out of rotation due to the zoning. So you pick one up that has conforming zone codes, you're in the clear and can bank on great long term appreciation.
Post: Top 10 Places I'd Build a Bourbon Focused Airbnb By
- Real Estate Consultant
- Nashville
- Posts 70
- Votes 22
^^^Agreed. We're better known for our Tennessee Whiskey than for Bourbon. However, when people are traveling to Nashville they think bourbon/whiskey in general which would make it attractive in general.
Post: Suburbs for long term ROI
- Real Estate Consultant
- Nashville
- Posts 70
- Votes 22
You want to look at the companies that are moving to those respective areas. Is it diversified industry or just one sector that's growing? More diversified the better.
Also how is the city changing to accomdate growth? If the city has a solid plan in place then that means commutes are made easier and therefore the suburbs become more valuable.
In Nashville, as long as you're in any of the immediately surrounding suburbs, you're gonna be about 30 minutes max to downtown Nashville which makes those suburbs valuable.
Post: Chicago net migration trends and investor outlook
- Real Estate Consultant
- Nashville
- Posts 70
- Votes 22
Quote from @Harris Miller:
Quote from @Jacob Gomes:
Quote from @Tom Shallcross:
When looking at macro-level data like this, it's also important to not make blanket statements (except that our legislation is awful :).
Chicago has a larger population than Denver, Nashville, Minneapolis, and Salt Lake combined. That does not make it a better or worse place to invest, but I bring it up to show that it's such a large and diverse city. We literally have hundreds of different pockets. We have some neighborhoods that have been demolished over the past decade and others where home prices have tripled. Historically it's been one of the most segregated cities (which is obviously not a good thing) and this has lead to block-by-block changes where you basically need boots on the grounds if you are going to invest here.
If you are looking to syndicate a deal, yea it's gonna be very challenging here for numerous reasons. But if you're looking to househack, 25% of our inventory stock is 2-4 unit brick buildings that would cost over seven figures a pop to build em like that today, and the nuances of our RTLO legislation do not apply to these owner-occupied buildings.
I'll also add that when starting out, here is a value to investing in your backyard; regardless of where you call home. You can embrace all the face-to-face meet-ups, get to know brokers on a personal level, learn the area firsthand, and get your feet wet close to the action. From there you can then choose to scale or pivot to another market with your learnings.
A very good thing to note here is the number of multi-families between different cities. In my opinion, TN is overall a better place to invest due to the more landlord friendly nature of our state.
However Nashville has very few small multi-families available so finding those asset types to invest in/house hack in is a bit more difficult. However an airbnb in Nashville is a hugely attractive asset class.
To add a little to this, with aribnbs in Nashville you just need to pay attention to zoning as there are actually many places around Nashville that will not allow airbnbs but overall Jacob is very right.
Great point!
You have to be specific with the zoning codes or else you'll end up in a bad spot.
I send out weekly emails to every single one of my clients who look for airbnbs with every single airbnb on the market that has a conforming zone code. Happy to send to anyone who wants to keep up to date on the market.
Post: My thoughts on the latest episode of On the Market
- Real Estate Consultant
- Nashville
- Posts 70
- Votes 22
There are a few important factors to consider when analyzing a market.
One is growth. How many companies are relocating their offices to your city? What's the diversification of industries? Is it reliant on only one industry therefore is vulnerable, or is it widespread?
Another is price to rent ratio. What's the average price of a home vs the average rent price? Divide rent into price and the higher that number, the more attractive of a market it is.
Also, how landlord friendly is your state? If your tenant isn't paying, how long will it take to be able to evict them?
Post: Chicago net migration trends and investor outlook
- Real Estate Consultant
- Nashville
- Posts 70
- Votes 22
Quote from @Tom Shallcross:
When looking at macro-level data like this, it's also important to not make blanket statements (except that our legislation is awful :).
Chicago has a larger population than Denver, Nashville, Minneapolis, and Salt Lake combined. That does not make it a better or worse place to invest, but I bring it up to show that it's such a large and diverse city. We literally have hundreds of different pockets. We have some neighborhoods that have been demolished over the past decade and others where home prices have tripled. Historically it's been one of the most segregated cities (which is obviously not a good thing) and this has lead to block-by-block changes where you basically need boots on the grounds if you are going to invest here.
If you are looking to syndicate a deal, yea it's gonna be very challenging here for numerous reasons. But if you're looking to househack, 25% of our inventory stock is 2-4 unit brick buildings that would cost over seven figures a pop to build em like that today, and the nuances of our RTLO legislation do not apply to these owner-occupied buildings.
I'll also add that when starting out, here is a value to investing in your backyard; regardless of where you call home. You can embrace all the face-to-face meet-ups, get to know brokers on a personal level, learn the area firsthand, and get your feet wet close to the action. From there you can then choose to scale or pivot to another market with your learnings.
A very good thing to note here is the number of multi-families between different cities. In my opinion, TN is overall a better place to invest due to the more landlord friendly nature of our state.
However Nashville has very few small multi-families available so finding those asset types to invest in/house hack in is a bit more difficult. However an airbnb in Nashville is a hugely attractive asset class.
Post: where to invest for first time rental unit invester?
- Real Estate Consultant
- Nashville
- Posts 70
- Votes 22
Google the best price to rent ratios in the country and go from there!
Post: Short term rental orlando versus Nashville
- Real Estate Consultant
- Nashville
- Posts 70
- Votes 22
Hey Armel,
SFHs for STR in Nashville are exceptionally rare, due to the zoning restrictions. However before the current restriction there were numerous homes that were STR eligible. They retained their permit after the changes, but if they ever sell, then the permit is no more and the STR is taken out of circulation.
The only properties that are allowed for new permits are commercially zoned properties like certain townhomes and condos.
This means that over time the # of STRs in Nashville will go down, meaning demand will go up. For that reason I'm extremely bullish on the STR market in Nashville.
DM me if that's at all unclear.
Post: Property Management in Nashville, TN.
- Real Estate Consultant
- Nashville
- Posts 70
- Votes 22
I'll DM you the info for the guy that I use for my clients.
Post: Memphis Turnkey Rental
- Real Estate Consultant
- Nashville
- Posts 70
- Votes 22
Memphis will offer some pretty great cashflow for a low barrier of entry. However screening your tenants properly is absolutely critical. You don't want to get great cash flow then spend thousand every time you turn over a tenant or heaven forbid, evict someone.
Long term I'm wicked bullish on Memphis, I'm hoping it's trending in a real positive direction.