The next big thing in Middle Tennessee

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I am assessing investing in Middle Tennessee for long term rentals and would love your thoughts on where the hotspots are likely to be over the next couple of years. South of Nashville (Brentwood, Franklin, etc) is pretty much already out of reach for rookie investors so would appreciate any insights from the community

[Luka Milicevic]

@Account Closed

Welcome to the forums!

Brentwood and Franklin are located in Williamson county which is one of the wealthiest counties in the country. Most of the housing is comprised of class A residential so the rent to value ratios are not going to be great. You would buy there to live or if you just want to own property in the best location possible....

Overall, the long term rental game is rather difficult in the middle TN market right now, especially in the Nashville area. We have had so much appreciation in the last 2 years and rents haven't quite kept up. They have gone up substantially, but not at the same pace as home prices. So, right now we are in a low rent to value ratio in the greater Nashville area. 

In terms of up and coming locations....

If you drop a pin anywhere in Middle Tn it's going to be a "hot spot" in the near future if it already hasn't become one. There isn't a place in the MSA that I would tell you to avoid. 

A few places I'd recommend you look into:

Madison - it has been up and coming for a long time now and I believe there is still going to be a lot of growth here over the next few years. The council person is pushing for developments in the area and so they location as a whole is pro growth. 

Whites creek area 37218 zip code. I didn't like this location a few years ago, even though it was starting to turn. The reason I didn't like it was the lack of commercial that was out there. you had to drive to get anywhere. That is starting to change, and the larger housing developments are starting to move in. 

Dickson - Affordability is a big plus here. Located along I40 - the least congested highway into downtown. A lot of homes here being built at the 350k price point. Again, affordability is the big plus here. There is commercial going in as well, and several larger developments are getting re-developed and revamped at the moment.  

My other location I like at the moment is going to be Columbia TN. The Ultium cells factory is underway there. A partnership with LG and GM to build a factory to produce car batteries. It's really in Spring Hill but right on the border with Columbia. I also like it due to the affordability factor. You can get in sub 300k on a decent property. 

With all the jobs in Franklin and Brentwood, people were pushed south for housing in Spring Hill and Thompson's station. With those two areas exploding and becoming less and less affordable, the next stop was Columbia. All the buyers that I represented that bought houses with me in Columbia all work in the Franklin/Brentwood area. 

I could go on for days, but that's just a highlight of a few places to put on your radar. 

Right now, I'm looking for LTRs in the locations mentioned. Looking to build STRs in Nashville. Renovations anywhere in the Middle TN area. It all depends on what strategy you want to follow. Rates are high...that's the new normal. We need to accept that and make things happen in spite of where rates are right now.

Let me know if you have any other specific questions.