Nashville is an excellent market for investors who want to buy rental properties. There’s a lot happening in and around the city. The economy is strong and the population is growing. It’s a great time to be a real estate investor, and if you’re thinking about entering the market, we have some advice on how to pick the best possible property.
The Location is Desirable to Tenants
You don’t have to be a wise real estate investor to know that location matters. It matters to buyers and it matters to tenants. Most of the renters in Nashville want to be close to work, schools, and shopping. Many of the millennials moving into Nashville want a walkable neighborhood. Tenants with families will be looking at school districts. Look for a property that’s accessible and easy for commuters, students, and families. Buying something too remote will only result in a long vacancy or a lower rental value.
Well-Maintained Properties are Always in Demand
It’s often tempting to buy a fixer upper. After all, the price is usually attractive, and you can get excited about putting your own touches on the home. But, remember this isn’t a home you’re living in yourself. It’s a rental property, and you’re going to want to collect rent as soon as possible. Buying a home that isn’t in great condition means that you’ll have to sink a lot of resources into it and spend a lot of time fixing it up. You can’t afford that as an investor. Look for well-maintained property that tenants will find attractive and appealing. Have it inspected before you buy it. Talk to a professional Nashville property manager so you’ll know if any repairs or updates will be needed before you list it on the Nashville rental market.
Make Sure the Math Makes Sense
Location and condition are critical when you’re choosing an investment property. You also have to make sure it makes you some money. Take a look at what you’ll spend on it and what you can expect for rental income. Your property manager should be able to conduct a comparable market analysis that tells you what kind of rents you can expect. Compare this to the expenses you’ll face, including vacancy time, repairs, insurance, taxes, and management fees. Make sure you’re comfortable with the cash flow that you’ll earn. No one invests in property to lose money, and in Nashville, you shouldn’t have to. Many neighborhoods around Nashville have reasonably priced homes that will allow you to make a smart purchase and earn high rents.
There’s a lot more to consider before you buy an investment property in Nashville. Think about whether a single-family home or a multi-family unit is better for you. There are challenges and rewards to each type of property. You’ll need to decide how you’re going to finance your purchase, and what that will mean for your cash flow and ROI.
We love working with investors at every level. Contact us at Omni Realtors & Property Management for more advice and any help you might need choosing a Nashville investment property.