Investor · Boerne, TX · Member since 2015 · 139 posts · 71 votes
I recently moved from Arlington, TN to Nolensville and I am trying to figure out my best strategy going forward. I currently own two properties in Memphis which cash flow very well when I am not having to evict someone. I cannot, however, expect that I will experience much appreciation. I could pony up and purchase something here in the Nashville area that has a higher likelihood of appreciating over time, but will cost me two arms and a leg. The market is so hot right now I am also just a bit nervous about the future. I would also like to implement the BRRRR strategy on m next property and may have a better chance of a higher ARV in Nashville than Memphis.
So, anybody have any thoughts or person experience that could help me focus?
Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
10y
Personally, I would never ever bet on appreciation. I just look at cash flow. Appreciation is something you're trying to predict and is a dangerous game (in my humble opinion)
Anyway, let me know if you want to get together and discuss shop.
Nashville, TN · Member since 2016 · 82 posts · 137 votes
10y
Hi Steven! And hello Nolensville neighbor!
It's up to you whether you think you can time the market. Nobody knows when the next economic downturn might come. It could be next week, next year, or a decade from now.
We have the advantage of being a city that has an above-average demand for housing, especially compared to nearby cities like Memphis and Louisville. There's all sorts of figures out there about how many people are moving to Nashville, but the bottom line is it's a LOT. We're seeing the effects on the failing infrastructure of Nashville, causing all sorts of traffic headaches. The effect on housing market is that prices will continue to rise, especially where demand is high but supply is low, which is the city core that is more friendly for commuting.
My suggestion would be to start BRRRR in the C- neighborhoods that are within the interstate loop. And as always, buy low and sell high. I'm getting started as a wholesaler. If you're interested in seeing what properties I might be able to find for you, which you can get at a discount, please send me a message!
Real Estate Investor · Memphis, TN · Member since 2016 · 405 posts · 132 votes
10y
I would suggest to figure out what are you willing to use your arm and leg to pay for as well as what type of return are you looking to achieve (cash flow wise). There are investors here in nashvilles hot market buying properties at a deep discount. While the prices may not be at the Memphis price, there are good deals around. You may have to be more patient to ensure that you meet your criteria but if believe once you get your first rental at the right price your a BRRR strategy will keep you rolling.
Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
10y
Personally, I would never ever bet on appreciation. I just look at cash flow. Appreciation is something you're trying to predict and is a dangerous game (in my humble opinion)
Anyway, let me know if you want to get together and discuss shop.
Investor · Nashville & Chattanooga, TN · Member since 2015 · 182 posts · 138 votes
10y
Agree with @Luka Milicevic on appreciation. Buying property that cash flows on day one is a great way to start and grow your business. Having cash flowing rentals provide monthly cash, mortgage principle reduction and tax benefits. Appreciation is icing on the cake.
Nolensville is a great location. I'd try and find something around there as that is a great market in my opinion. Additionally, check out neighboring Smyrna and LaVergne. There are good deals there and lots of jobs in the area supporting a good rental market.
Investor · Boerne, TX · Member since 2015 · 139 posts · 71 votes
10y
Thanks all. Just a point of clarification, I would absolutely be looking for cash flow on a property here. Just trying to determine if it is worth the increase in sales price to increase my likelihood of getting some icing, I will probably be messaging some of you to get together and talk about this market.
Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
10y
@Steven Gillmer That's the way I look at it "icing". I sure do love Nolensville and actually wanted to live out there myself but found a better deal closer to the city for my primary. PM me if you want to meet up.