Short Term/Airbnb in Nashvlle

[Stefanie K.]

Hi BiggestPcckets community!  I am an investor in Chicago with experience with both long term tenants and short term rentals.  Recently, we have considered partnering with a good friend to buy and do Airbnb in Nashville.  While I was originally "all in" on the idea (relatively low purchase prices, ability to cash in on the "group" market that floods downtown every weekend) I have 2 major concerns after doing some very preliminary research.  Curious if any Nashville investors who do Airbnb can confirm or provide additional insights...

1) The properties that fit groups, 3-4 bedrooms, all look VERY nice (high end furnishings, decorations, themes, etc), new and BIG.  Nice and new are ok, BIG scare me since BIG means lots of capital to furnish the place appropriately.  Is this an accurate assessment or do people have cute/cozy houses (my preference) that can still sleep 8-10 (the an airbed) that just don't have insane sqft that you need to style and furnish?

2.) We would be looking to cash in on the group market  (bachelor, bachelorette, birthdays, girls/guys weekends) and curious what the general sentiment is in Nashville negihborhoods around Airbnb.  Where do locals feel regulation, if any, are coming?  We would stay away from Condos since those can pose their own challenges.

I don't want to buy in Nashville for long term tenants, I really only want to do it from a distance if I get the upside of the short term market but I am questioning if this is the right next move for our funds...

[Luka Milicevic]

@Stefanie K. You can't get a permit for a short term rental right now as a non owner occupant. The city has hired people specifically to seek out short term rentals that are being operated without a permit. If you decide to do it without one you are going to get shut down pretty quickly

Investors are currently dumping properties that were once Airbnbs. Something like 10% of homes in East Nashville are being sold fully furnished.

That is just the current situation right now and it has been a very hot topic. If you decide to proceed anyway, you are gambling and not investing.