Investing In First House Hack Property - Advice & Realtor Needed

[Kurt K.]

Hello! 

My wife & I just recently moved to Nashville late last year. We are currently renting in the East Nashville area and are looking to purchase a house hack in the next 3-6 months. We have a 20% down payment saved and have been doing some preliminary property analysis while researching our investment options (Ideally a small multifamily but am open to a SFH). It's obviously a very competitive market right now so I'd love to get connected to an agent that has relevant experience to help guide us. Please let me know if you have any referrals or recommendations!

Below are the two investment options we are considering and looking into:

Option 1: Duplex - Owner occupied, renting out the 2nd unit. The goal being we'd move out after 2 years and keep as rental unit.

- Easier said than done, I haven't been able to find a duplex COCROI that is more than 7% in Nashville. Personally, I'd be okay with a 10% COCROI but even that seems tough to find here. Is this realistic?

Option 2: 3/2 SFH - Rent or AirBnb a single room.

- This is a back up plan if a small multifamily doesn't pan out. I do still need to research AirBnB permits etc.

- Does anyone have experience doing this? Curious what income/vacancy rate can be expected here. Obviously there are a lot of variables that factor into that answer but generally speaking. 

Thanks in advance!

Kurt

[Luka Milicevic]

@Kurt K.

Welcome to the forums!!!!

Option 1: Yes, it's realistic for sure but more than likely not going to happen on the MLS. With a 20% downpayment you can most definitely get a 7% to 10% return in this market. It also depends on what you will be considering your return. If you are talking about ONE side of a duplex returning that amount then really you are looking for a 14-20% return on total asset. This gets a bit more tricky.

Option 2: If you can find something that makes sense in terms of layout. A large bonus room, detached unit, etc then this will be a great option for sure. Since it's a legitimate personal residence then permitting is much easier than an investor only owned STR.