Making an Investment in Nashville, TN March 2022
Want to invest in property? Looking at Nashville because everyone is doing it, and wondering if you can still get in? 100%. Let’s do it.
Everyone wants to buy in Nashville right now, because the prices are manageable, the economy is strong, there’s no income tax, and evidently we all missed the boat in Austin. Even with the way real estate is drastically increasing in price, you can still get property for less than other areas – we are laid out in a way that I believe will allow for much more of this growth. Even with the news touting a “housing shortage”.
Now, it’s not untrue that it’s hard for people that need homes to find them. Remember this though, there are holes in the system that account for this – it’s not just property prices and lack of inventory. I get calls all the time from people who can’t afford to rent, and have been provided with Section 8 housing assistance, but there’s no resource specifically for them to find Section 8 housing. If they want to live in a single family home they have to call one landlord or listing agent after the next to ask the same question over and over again, “do you accept Section 8 vouchers?” Because not every landlord does. And not all of those people want to live in housing projects that are known to accept Section 8 vouchers. Believe it or not, people want to have a front yard, and to be able to walk to work, or stay in a specific neighborhood that they like, right now. That’s hard, and there’s no fix for that right now.
And yes, all of Nashville real estate is going up in value, inflation and interest rates aren’t helping some of us be able to afford the houses we want to buy in the neighborhoods we want to be in. But investors work hard and make sacrifices like everyone else. No one said real estate was an easy job. Actually that’s not true – everyone thinks property investors and real estate agents sit around all day doing nothing and making hoards of cash for it. Well that is simply not true. I work more, and harder now than ever before, while this market is as hot as it is. And if you’re just in need of purchasing a home, you don’t care about investing in property – I want you to know not that it’s possible, but why it’s a good investment.
So let’s get real – if you want to buy property in Nashville, what you’re seeing out there is not a deterrent, it’s a call to arms. You need a team, boots on the ground in it everyday to help find the right properties. Real estate can be risky, but the deals are there. I see them on the daily basis. But again, I’ve made it my job to find those opportunities. I get up, and I go to work just like you. If you want to buy property and you’re willing to put in the work and build your team, now is the time to shit or get off the pot.
Let’s exercise together. Let’s really define this opportunity. Right now, it’s March 11, 2022 as I sit and record this video. I’m going to throw up 3 properties listed at or under $350,000 that I believe are good investment potential for any level of investor. Now to properly qualify these, I’m going to say what we’re interested in for the purpose of this exercise is both single family homes that can work for a small family starter home, or long term rental properties. They’ll grow in value over time, and they have the potential to generate passive income for as long as you have them.
Property 1. It’s a duplex, making $2000 a month currently, and in Murfreesboro, so that’s probably not as much as you can charge. It’s $350,000. It’s a college town, and a working man’s town. People need places to live. At 2 grand a month, even if you finance conventional with 20% down, you’re not losing income on this, that’s going to Net you around $800 a month. If you have cash great, but you may as well finance it because you’ll still gain 15-20% in equity in the next year. Which if you’re bad at math, means you’ll make about $70,000 in equity in the first year, plus your net income. That equity is money you can use to buy the next one, or do repairs, or buy a new car. Also, it would be great for a first time investor who could live in one side, and rent the other.
Property 2. 3 bed, 2 bath, single family home in Madison, listed at $300,000. Madison is up and coming, and whether you realize it or not this is the next East Nashville. Everything bad you hear about Madison is exactly what people said about East Nashville back in 2010 and now everyone wants to live there. Income potential is there, it has a garage, and with some updates – you’ll never have an issue reselling this house should you need to capitalize on the equity. Refinancing can be a little funny in Madison because appraisers don’t seem to get what this neighborhood is right now, but that’s not a bad thing for a long term investment. Numbers on this one look about the same as the duplex, even as a single family home. Another great opportunity.
Property 3. This is another 3 and 2 in an area of Madison that’s only going to go up in value. The great thing about this one is that even though it’s going to be competitive to get in, you can afford to spend $350 or more on it, because all the updates have already been done. It’s move in ready. Everything about the house is nice, easy, low maintenance and it’ll make a profit even if you’re financing 80% or more of the purchase. It’s a phenomenal investment.
Look folks, I’m not here to sell you buying real estate in Nashville, you’re likely watching this because you’re already sold on buying something here. But the proof is in the pudding, and there’s pudding all over this town. If you have any questions about how to get in on these deals, need those boots on the ground, or if you have a property you need to sell – even if you need to know how you can buy before you sell… for all of the above, give me a call. I’m here, doing this, every day.