(Fun with) Nashville NOOSTR Zoning & LLC Transfers

[Lucas Bernard]

Hey Folks!

Looking at a property that would be a somewhat turnkey STR, it has great numbers and occupancy rates. Catch is ... it is zoned at RM20-A, which for those of you keeping score at home, is apparently not eligible for a Non owner occupied STR. However, the LLC is grandfathered in, and so they are saying we would be able to still operate this if we purchased and managed under the LLC.

Obviously a lot going on here, and I am still relatively new to this world (would be first STR in Nash). Those assumptions above may not even be entirely accurate, that's just what I've been told plus what I've deciphered from the zoning table. Any tips you could give me on this in terms of viability? Willing to go the extra mile here based on the numbers.

Thanks!!

[Michael Baum]

Hey @Lucas Bernard. Who is saying that?

If the owners are saying that, then it is not to be trusted. Verify with the city.

Personally it makes no sense that an LLC would be able to operate without being onsite when it is required.

The only thing that sticks out is the grandfathered in statement. I would get with the city asap and find out all the details on this.

It could be possible that if the LLC changes hands that it loses it's exemption.

Before you get too far, get with the city/county and make sure everything is copacetic.