All Forum Posts by: Luka Milicevic

@Adam Sha

The only person that can properly answer this question is someone that analyses markets on a national level or someone that invests in all 3 of these markets.

The answers you're going to get from everyone on this forum that falls outside of the above is going to simply tell you their market is the best market. 

In my case, I fall into the latter - I only invest locally therefore the Nashville market is the best for two reasons.

1 - I sell real estate in Nashville and I have an incentive for you to choose this market.

2- I know absolutely nothing about the other markets mentioned in your post. 

Outside of that.....

There are certain areas in the surrounding counties of greater Nashville that are very much worth looking into. There are areas in the path of progress right now that are still relatively affordable and have decent rent to value ratios and are poised for long term appreciation. 

The stadium deal downtown is also going to transform the city in ways us locals can't yet comprehend. 

If you do want to discuss the market more, please feel free to reach out and I can talk to you about it as much as you'd like. 

@Rick Albert

Part of what is happening in Nashville is the increase in apartments coming online in the urban core. Especially in the immediate downtown area. 

Recent rental in Germantown dropped $200 below previous rent price. 

The suburbs are pretty stable. Not increasing, not decreasing. 

@David S.

Very limited info, but here are my thoughts...

You're right about how much supply is coming online in Nashville. Specifically high end luxury rentals downtown. The market is going to take a while to absorb all that inventory. Currently offering 3 months free rent. You're not in that market or product line here. 

The area specifically you mentioned is very much in the path of progress, but that's a blanket statement for the whole of Middle TN. Every area is in the path of progress. Some more than others. 

I consider that whole area greater Hendersonville and that is actually quite affluent. Especially along the lake/river. The homes on the lake start at a million. 

This is just a very brief post with the limited info. There's a LOT more that goes into a syndication as I'm sure you are very aware of. 

What sort of advice are you looking for?

It sounds like you just started your RE journey. You probably need to start from the very beginning reading books and listening to podcasts. 

@Jack B.

They won't give you quotes over the phone bc that might not be the issue. They have to come out and inspect it first. 

I would get a second opinion on cost. 3500 to repair an AC is not reasonable....in my market. 

If the AC was workign when they moved in, even if it's a luxury, it should still be working as that was the condition of the property when moved in. 

 There are 30+ cranes right now in Downtown Nashville. Nashville yards alone has 8 cranes going. 

@Kinnari Pandya to answer your question on the "best" market to invest in....

Whatever agent posts on here - their market is the best market. 

@Darice B Langham

Mid term rentals are 30 days+ therefore do not fall under the same regulations as STRs. 

@Laura Winegardner

What did your contractor say about permitting? 

Inspections take for absolutely ever so I know many would be permit pullers are skipping the process because it can take a month to get an inspection. (Yes, I know everyone wants to sit out their high horse and say to get permits but it's different when you are eating a 12% loan while waiting for someone to check your project).

Have you spoken to the city about what type of permitting you need? If you're running plumbing, electrical, HVAC out there it's different than if you're just putting up drywall. Depending on the extent of the actual work you may or may not even need one. 

Your contractor should be the one that is on top of all of this, assuming they are the GC. 

@Gabe Bouldien

The rate you got is lower than I would expect on a DSCR.

Closing costs are a little high, but not unreasonable. 

Down payment is expected

Prepayment penalty is a bit harsh at 5 years.

Overall, this is not a bad loan. Not even bad for a conventional loan honestly, especially for DSCR.

I would look into portfolio loans before jumping into DSCR.

Is real estate better than stocks???