Nashville Price Per Unit and Cap Rate?

[Melissa Dorman]

Hey, I’m starting to explore the Nashville market to expand my portfolio. I’m looking to acquire a 10-20 unit complex in or around Nashville. I’m wondering for various property classes (A,B,C) neighborhoods/tenant quality, what can you expect to see in cap rates? And what is the range of price per unit? Would love to hear about other people’s experience buying multi family in the area. Thanks!

[Luka Milicevic]

@Melissa Dorman

Cap rates:

Nashville-Close to downtow. Vandy, Belmont, 12 south, etc: 2-3%

Greater Nashville-4-5%

Outskirts of Nashville outside of Davidson county: 7%.

This is if you are buying from a broker or another investor. If you go door knocking I'm sure you can find a better deal, but these are the cap rates that are currently closing.