Nashville ( TN) versus Tucson (AZ)

[Armel Bemmo]

Between Nashville (TN) and Tucson (AZ) Which place will be better to invest in AirBnB? 

[Luke Carl]

It’s not “an Airbnb” it’s a vacation rental. You do not want to do this in Nashville. I don’t know anything about Tucson 

[Dev Conboy]

Agreed with Luke on that one, It would be easier to pass a kidney stone than acquire and permit a cash flowing NOO STR in Nashville.

[Patrick Allen]

By contrast, Tucson and pretty much all of Arizona is very short-term rental friendly. There are a few locations (Scottsdale) that have rolled out their own regulations over the last few years but generally it's pretty landlord-friendly in the 48th State.

Feel free to DM me if you have further questions: I operate my own AirBnB unit as well as being an agent here in town.

[Armel Bemmo]

Quote from @Luke Carl:

It’s not “an Airbnb” it’s a vacation rental. You do not want to do this in Nashville. I don’t know anything about Tucson 

Thank you  

[Armel Bemmo]

Quote from @Patrick Allen:

By contrast, Tucson and pretty much all of Arizona is very short-term rental friendly. There are a few locations (Scottsdale) that have rolled out their own regulations over the last few years but generally it's pretty landlord-friendly in the 48th State.

Thank you , please inbox me our contacts . 

Feel free to DM me if you have further questions: I operate my own AirBnB unit as well as being an agent here in town.

[Armel Bemmo]

Quote from @Dev Conboy:

Agreed with Luke on that one, It would be easier to pass a kidney stone than acquire and permit a cash flowing NOO STR in Nashville.

Thank you, Very odd, Nashville is ranked as one of the best place to invest for short term rental.

[Dev Conboy]

Quote from @Armel Bemmo:

Quote from @Dev Conboy:

Agreed with Luke on that one, It would be easier to pass a kidney stone than acquire and permit a cash flowing NOO STR in Nashville.

Thank you, Very odd, Nashville is ranked as one of the best place to invest for short term rental

Careful with your sources... lots of click bait these days! If permitting and zoning weren't such a nightmare it would be!

[Todd Goedeke]

Quote from @Armel Bemmo:

Quote from @Dev Conboy:

Agreed with Luke on that one, It would be easier to pass a kidney stone than acquire and permit a cash flowing NOO STR in Nashville.

Thank you, Very odd, Nashville is ranked as one of the best place to invest for short term rental.

[Todd Goedeke]

Quote from @Armel Bemmo:

Between Nashville (TN) and Tucson (AZ) Which place will be better to invest in AirBnB? 

 Look at areas outside of Nashville where Nashville regulations for STVRs do not apply. Couples and groups are willing to drive 15-30 mins each day to entertainment and other venues.

[Chad McMahan]

Quote from @Patrick Allen:

By contrast, Tucson and pretty much all of Arizona is very short-term rental friendly. There are a few locations (Scottsdale) that have rolled out their own regulations over the last few years but generally it's pretty landlord-friendly in the 48th State.

Feel free to DM me if you have further questions: I operate my own AirBnB unit as well as being an agent here in town.

Patrick,
I almost didn't respond, but I have to say something for the benefit of investors and others seeking accurate information. Until the laws change, 100% of Arizona is STR friendly. As long as homes have no STR restricting HOA, AND as long as homes have no STR restricting CC&R's, towns such as Scottsdale cannot stop STR's or limit the length of stays.

In Scottsdale there is a valid concern with STR's, as some tenants are throwing loud, late night parties- some of which have cars blocking the roads and neighbors' driveways, etc. That's a real problem for the locals and Scottsdale is trying to enforce noise violation penalties, as well as required contact info for the owners. Aside from that, it's fair game- for now.

The Arizona laws *may* change as soon as within months. Or it may not change this year(or next year, etc), at all. Some house bills are in process, but nobody knows the outcome at this time. For now, our governor is still doing everything he can to retain privacy rights for landlords, as well as encourage state investment and proactively support real estate (investment) security. Many investors are bringing their money to AZ for this  reason.

My question is, as bills make it as far as to his lap, will he sign/approve them? Or veto?
My best guess (I'll be the 1st to admit I may be wrong about this prediction) is some will make it through and we will likely see AZ laws that are clearer about noise violations and their consequences, liability insurance requirements for landlords, owner contact info on file with the city and/or county. *Possibly* we will see a percentage cap on number of STR's in towns. It's too early to tell.
And honestly, even if all the house bills go through and get approved and become law, there is a big question as to how some of the restrictions will be enforced.

Bottom line, for now AZ is very STR friendly. Changes are happening everywhere, but AZ is one of the friendliest STR states in the country, and I expect it will stay that way- even as nationwide grumblings persist and grow. As any STR restrictions change- they *must* happen on the state level to be lawful. As of now, cities & counties can not restrict length or allowance of STR's.

I strive to be the most informed person in the room, about STR's in AZ, current and possible future restrictions, and I'm actively buying and of course helping my clients expand their portfolios.
Insanely great STR opportunities in the wind- go get 'em.

[Brian G.]

@Chad McMahan what markets in AZ present the best value proposition for SFH VRs? ie highest gross revenue to purchase price ratio

[Chad McMahan]

Quote from @Brian G.:

@Chad McMahan what markets in AZ present the best value proposition for SFH VRs? ie highest gross revenue to purchase price ratio

 Hi Brian.

My clients in Sedona need to have larger budgets, BUT they almost always bust through the 1% rule. Meanwhile I'm seeing almost everyone on BP saying that rule cannot be used anymore(elsewhere). My clients and I have a property in escrow, closing 3/28, that will *conservatively* have cash on cash of 35% after remodel. It will be huge. Closed escrow last month on a property that will have 25%+ cash on cash. Negotiating now on a property that will have over 30% cash on cash with a huge remodel value add.
Low end cash on cash tends to hit 15%, with closer to as-is purchases. Remodel project cost (with higher cash on cash) usually runs approx 5%-10% of purchase price.

For clients that cannot pay $1M+, and are within $400k - $700k, we are having huge cash flow success in the nearby town of Cottonwood. Cottonwood hits about 5% lower cash on cash than Sedona. But, the numbers are still strong and should be (economy willing) hugely appreciating over the next 3-5 years- likely doubling in value during that time.