Looking to buy a rental property in Nashville, TN

[David Anaya]

I am looking to purchase a rental property in Nashville, TN. I am looking for multi-family units that would hit the 1% or 1.5% marks (monthly rent/purchase price) Any tips/recommendations for out of state investing? This would be my first out of state investment. Also, any specific areas you would recommend? Thanks

[Joseph High]

@David Anaya

When it comes to out of state investing, what specifically are you looking for? Tips in general or advice on investing specifically in Nashville as a California investor? 

For multi-family units that hit the 1% or 1.5% mark, those are going to be tough to find in the country, and Nashville is no different. The National average cap rate for multi-family properties was 5.5% while Nashville's average was 6%. 

If you really want to hit that 1-1.5% rule, you're probably going to have to look at the broader Middle TN area rather than Nashville. 

For the Greater Nashville area, I would recommend looking outside of the Downtown area. Areas like Madison, Murfreesboro, Smyrna, or Old Hickory.