All Forum Posts by: Wayne Woodson

I have been trying to get 1 short term rental property, just 1 for the past five years. I know that if I just had 1 then everything else would take off. My credit sucks and I don't have huge sums of cash just laying around. It seems like it has been almost impossible for me to just get 1 property. I have been turned down by more banks than I care to mention. My home doesn't have enough equity to pull from, under the 80% LTV. I have met so called "private lenders" who won't even return my calls. Want me to put down 20%, who don't lend on anything STR or they want me to have a million years of experience and a 900 credit score. In my area of Nashville STR's are all but banned yet I have been able to locate some awesome deals that are approved and would cash flow exceptionally. The issue is literally no one will lend me the money to get them and I don't have $400k just sitting around in my savings. I am at a loss and almost at my wits end.

Good luck finding properties in Nashville that cash flow. It seems the name or the game is to make enough in rent to barely cover the mortgage and bank on appreciation. At least that is what I am seeing in the market. 

Are people even still able to do full BRRR's in the Nashville area? Rates are still high and the only properties I see that have any cashflow are way up in Clarksville or 2 hours out in the backwoods. Most of the duplex properties I've looked at barely make the mortgage payment let alone have anything left over.

I wouldn't say there is a best state overall but there are a few cities that stand out. Nashville sucks for house hacking as most of these properties can barley cashflow anything above a positive cap rate. Memphis and Chattanooga on the other hand seem to have better cashflow in my professional opinion.

Welcome to BiggerPockets! I am an investor in the Nashville area born and raised.

Quote from @Denis Ponder:

To clarify, did you buy your first property and it was your primary residence?  Or was it your first investment property?  The statement "How to buy your second investment property" implies you have a first investment property.  So just trying to make sure I understand the situation.

It depends on your goals. I would suggest a house hack, if you can. You can get another primary loan at 3.5% - 5% down, have help with the mortgage by renting the other units, or bedrooms if you want to go that route, rent out the first house, and be set. This is all assuming you have the income, reserves, capital, and DTI to support this route in addition to market rent being high enough to cover you.

Thanks for the reply. The first property is my primary residence on a FHA loan. I would like to rent out the first home if possible.

I bought my first property last year and am now looking to do a HELOC and buy my second investment property. I donlt have much equity and houses are expensive AF here in Nashville. My question is how do I buy my second property while living in the first one? Do I need to move to an apartment and rent out the first one or just try to find one that is dirt cheap? I am sort of stumped as to what to do next.

STR's aren't going anywhere but there is a downturn in the market (they used to call it a Recession in my day). One of the first things that take a hit during a downturn is travel and of course, that includes Airbnb. In the future, I think it will still be a good opportunity but only for those who buy right and run their STR's like a business and not a cash grab.

I was talking about this topic this morning. If you bought an STR in the last year just to "get in on the action" or "FMO" then you are screwed. I can't imagine paying $2k a month for a 3br 2 bath 1700sqft property that only brings in 3k a month. I can however imagine property bringing in 4k a month and the mortgage is on $900 for a 2/1 500sqft tiny house.

Let me guess that the majority of the "air bnb ready" properties are ugly 2-1 and 3-1 houses.

You won't find anything following the 1% rule in Nashville right now.