Tips for Purchasing Real Estate Investment Properties in Nashville, TN
If you’ve decided to invest in Nashville real estate properties, you’ve made a great decision. The market is in great shape, and you will find that the local economy is growing and the housing market is stable. Whether you’re a new investor or an experienced investor buying in Nashville for the first time, we’ve got some tips and advice that we think might help you have a more successful investment experience.
Take a Look at Market Metrics
Every real estate market is different, and even within the Nashville market, there are still micro-economies and nuances in each neighborhood. Before you invest in Nashville, you have to understand the properties, the rental trends, and the tenants. If you don’t, you could make a mistake.
Real estate in Nashville is still relatively affordable, especially when you compare it to other markets across the U.S. You can expect a good cap rate and a positive cash-on-cash return, but you have to crunch the numbers on the properties you’re interested in to ensure you’re making a smart purchase.
Take your time to get educated on the market, and work with local professionals who have been living, working, and investing in Nashville for years. East Nashville and Germantown are some of the hottest areas for investors now, but the best neighborhood for you will depend on your investment goals and what you’re hoping to accomplish.
Make it a Business Decision, Not an Emotional One
One mistake that a lot of new investors typically make is to look for a home that they might want to live in themselves. You’re not looking for a private home for yourself; you’re looking for an investment. This will be someone else’s home. Think about what you want to buy from a business mindset not an emotional mindset. Perhaps you love stainless appliances and a ceramic tile floor. That’s great – but Nashville tenants won’t necessarily require those things. And, you’ll spend a lot of money investing in them but you won’t be able to earn much of that back in rent. Think “Return on Investment” or ROI.
Tenants want a clean, safe, well-maintained home in a good neighborhood. Don’t spend a lot of time looking for the perfect house. And remember to treat this like a business, because it is.
Keep an Open Mind
Single-family homes make great investments. If you find one that fits your budget and seems like it will make a good rental, you should jump on the opportunity. But, don’t pigeonhole yourself into a certain type of investment home. There are a lot of great multi-family investment opportunities in Nashville as well. It never hurts to diversify your streams of rental income. Be open to anything, and be willing to consider some great investments that you didn’t think would work; especially if you have a credible advisor supporting them.
Contact a Nashville Property Management Company
We strongly recommend you at least talk to some local Nashville property managers before you buy an investment home. Your real estate agent can help you find properties and negotiate the closing details. But, you really need a property manager to help you evaluate how much rent you can expect, what types of repairs will be necessary to make the property ready for the market, and how long it will take to find a suitable, well-qualified tenant. Here at Omni, Realtors and Property Management Nashville, we offer it all. Experienced brokers specializing in Nashville investment property acquisition to help you source and purchase your properties. Then we have a full-service management team that will lease and manage the property after purchase. We provide all of this under one roof and are just a single call or click away.
Contact us at Omni before you buy your Nashville investment property.