Rental Property Investor · Memphis, TN · Member since 2013 · 57 posts · 13 votes
Here in Memphis we like to see returns in the neighborhood of the 2% or 50x the rent ratio. Meaning if it rents for a $1000 and the all in price is $50,000. The 1% rule would mean that you buy the house for $1000 and you're all in price is $100,000.
I am wondering what the typical deal would go for in the Nashville area. Should you expect the 1% rule. Are investors looking at these prices?
It's more difficult to find 2% rent to value deals in Nashville - not saying that they are nonexistent, but not as easy as Memphis. I think you need to reach out directly to sellers or have connections that enable you to get first look on pocket listings. Once they hit the MLS, 2% rent-value deals are hard to find in Nashville.
@Devan Mcclish I'll be sure to send you deals that we get that are the 2% rule.
@Keith Shackleford send me your email and phone number. I will send over the deals when I get them.
@Leo K. Hi Leo, thanks for the info. Send me a private message with your contact info if you're in the market for buy and holds or fix and flips. We will send them your way when we get them.
I'd be interested in meeting other investors in the Nashville area. I picked up a 1.5% deal in Franklin Tennessee recently, but am well under that on my Nashville property based on todays value, (but based on what I paid back in 1984, it brings quite a bit more than 2% ). I have held onto it more for investment value than anything else due to it's location right at 21st and I-440.