Considering buying a HPR property in Nashville-short term rental

[Jeffrey Naron]

Hello Nashville Investors,

I'm new to the Nashville market, but I have a friend that has relocated out there about a year ago and we're considering purchasing one of these new construction, tall and skinny's close to downtown.

I am new to the HPR (Horizontal Property Regime) concept and wanted to see if any of you that invest regularly in the Nashville market have any experience with these.  I understand the liability of the common areas and know there needs to be insurance in place, but are there any other unforeseen issues any of you know about?

My strategy is short term rentals through the popular websites that specialize in short term rentals.  There seems to be a high demand for short term rentals and if Nashville is anything like the Denver market, getting in on property close to downtown before it becomes cost prohibitive seems like a good move for appreciation.

I welcome all comments regarding Nashville investing in addition to the HPR concept.  Thanks in advance for the feedback!

-Jeff

(BTW, I live in Denver and am looking for markets outside of Denver that might be a little earlier in the market cycle where good deals can still be had in a high demand market)

[Brandon Brown]

Jeffrey Naron - Citizen Bank was willing to fund up to 75% of the land purchase cost, plus the full construction loan. We also cushioned the construction budget to allow us to pay the carrying costs out of the loan itself. Our out-of-pocket costs were $50k, since the land cost $200k. This is a higher-end build, around 2800sf in the Green Hills neighborhood. I have met with several other local banks who are willing to lend towards the purchase of the land, then roll that cost into a construction loan, then into a permanent mortgage product (if you plan on holding).