Nashville HPRs - Croley, Charlotte Park, Nations

[Allison Littman]

Hey Nashville area,

I recently moved back to middle TN from the San Francisco area. I already own a rental property in North Nashville (single family home 3bd/2ba) that I'm renting out, but I am currently looking for a primary residence in west Nashville (Croley Wood, Charlotte Park, or even Nations) based on proximity to my office in Belle Meade.

Obviously, I have missed the boat in these areas and prices are inflated. However, I do not expect prices to decrease in the next 2 years, so I would like to purchase in spite of the market being so hot. If I can find an HPR (tall-and-skinny) 3BD/2BA, I plan on renting out 1 or 2 of the bedrooms, so my mortgage will still be significantly less than renting. I am targeting a new build based on its marketability if I decide to go the AirBnB route, although otherwise I am not opposed to an older ranch.

I work as a Project Manager for a custom (very high end) builder in the area, so I have a relatively strong network of subs for work I need to put into a property. 

Finally, to my question: If I consider my access to subs one of my purchasing advantages, will a spec HPR builder in the area consider selling off just 1 of their 2 homes on a lot before completion? I would like to purchase after drywall is done and build-out finishes myself.

The HPRs on the market in these areas (and there are quite a few right now) tend to list only one on the MLS and the other one sits until the first sells. It seems like a builder could be motivated to get one off their books and focus energy on marketing and selling the remaining one once construction is complete. I'm not looking for a smoking deal (not going to happen in these areas/markets), just a way to get creative to save a marginal amount of money and install finishings I actually like.

Any thoughts? I know very little about the HPR strategy, margins, carrying costs, etc. Any creative ideas are very much welcome. 

[Allan Smith]

That's a unique strategy. I can think of two directions to take it.

Why not buy land and do the build yourself? It may require more resources, but certainly not too much more money, and there'd likely be quite a bit more profit/equity in the deal that way. Also easier to find land than find a builder who wants out all of a sudden.

To find a builder who wants to take a profit shortcut, you're looking for a "motivated seller" who makes their living in real estate. A unicorn indeed! The only thing I can think of for finding one of these is driving a couple neighborhoods you like and contacting the HPRs in that neighborhood OR simply blasting out dozens of offers to all those HPR listings. Your offer would have a cover letter explaining what you're looking for and your value proposition ("get it off your books right away" etc).