Getting started in a hot market

[Matthew S.]

Trying to get started in the Nashville area, focusing on East Nashville/Inglewood as well as the Woodbine/fairgrounds area. I'm a buy-and-hold guy who wants solid rentals targeted at young professionals, with some appreciation in the coming years.

Starting to feel a little crazy though. While I don't need a full-on turnkey property, it seems like even the properties aimed at flippers are super expensive. I'm an all-cash buyer, but that doesn't seem to give me an advantage (other than an auctions, which are few and far between).

My questions:

-Am I asking for too much? I kind of "want it all" (below-market price, solid rents, future appreciation, turnkey or at least no major renovations needed) and don't know what I should compromise on.

-What should my strategy be in this ultra-crowded market? I have a wholesaler who's actively looking for me, and an agent who sends me MLS updates, but I work full-time and don't want to spend more than 10 hours a week looking.

-I keep dreaming of a market slowdown. I know these things go in cycles, and am torn between sitting on my cash and waiting for the next drop, and the fear that Nashville will just keep going up and up (the city is experiencing incredible growth) and I will miss out on opportunities if I wait. Which of these is right?

Would love any help I can get.

[Brie Schmidt]

Am I asking for too much? Yes. In a growing market you can either get below market price / do rehab and add value or get turn key / with solid rents. Either you want instant equity or instant cash flow. Both have their advantages

-What should my strategy be in this ultra-crowded market? Set your ideal criteria and follow that. I run every property through my criteria and then only see the ones that meet it. I am not even looking to buy right now but I run every property that comes on the market that is in my target area.

Never underestimate the power of a large earnest money check. In Chicago we are experiencing multiple offers on almost everything. We were 1 of 12 on our last purchase (went 36k over list and our earnest money won the tie) Our good friend got outbid on 4 turnkey properties in a row with full price offers. Also know that it takes time. It took us 9 months to find our first

-I keep dreaming of a market slowdown. I don't know Nashville but I don't see a huge drop anytime soon. prices have gone up for us here and I think they will not see any huge spikes but will continue to go up gradually.