Looking to buy SMF in Nashville, TN to house hack

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Looking to buy SMF in Nashville, TN to house hack

Chris Bowe
Member since 2020 · 5 posts · 3 votes

Hello, BP! First post here from a newbie getting into the real estate game.

I currently live in Newark, NJ and looking to relocate to Nashville, TN permanently. I would like to find a small multi-family (duplex or triplex) to owner occupy, rehab, refinance, rent out and hold. Would be looking to live in one unit for 1.5 - 2 years until I build up enough capital to get into another property.

Unlike most of the posters here, I don't really have criteria for cash flow or returns on this first deal. This property will be my first purchase and willing to relax the financial returns for getting into the right neighborhood. After all, I will be living here for several years and don't want to sacrifice quality of life over that period. Treating this as a crash course education for future deals and aim to learn rehab skills and build an understanding of how real estate deals work.

Looking for some information on the Nashville market and any tips and resources for getting started there. My ideal scenario would be to find a duplex or triplex with a decent sized backyard in East Nashville or Sylvan Heights. Preferably a fixer upper that requires renovations I can do myself to capitalize on some quick equity gains. Walkability and access to parks, restaurants, bars and cultural amenities are more important than the financial backbone of the deal for me.

  • Budget: $400,000 and under
  • Cash on Hand: $40,000
  • Timeline: Close by July 2021

Feel free to critique any of the above, I'm here to learn! Any Nashville locals here that can help an out-of-towner get started?

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Elyse Wiser
Member since 2018 · 3 posts · 4 votes
6y

Hi Chris! Realtor here - Duplexes and triplexes are few and far between, especially in desirable areas like you mentioned. You'll find more options within your budget further from downtown but it sounds like walkability and ease of transit are important to you. In order to find something in a great neighborhood close to the urban core, I would recommend looking for a house with a walk out basement instead of a duplex! In Nashville, an owner-occupied Airbnb would also be a great option. Feel free to reach out to discuss more and best of luck with your move! 

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  • Angela Dulin
    Real Estate Agent · Nashville, TN · Member since 2020 · 31 posts · 14 votes
    6y

    Hi Chris, thanks for the colleague request! I am an agent in town and I have several clients doing exactly what you are wanting to do. My brokerage specializes in investment properties in the Mid TN/Nash area. Basically anything within a 45min-1hr drive radius from downtown.  I personally don't think you would have to sacrifice the cash flow on your first deal, just because its your first deal. You mentioned closing by July 2021, Are you not looking to move to town until then?? When you say "renovations you can do yourself" are you thinking more along the lines of cosmetic upgrades or just not anything too "scary" like foundation issues? Would you steer clear of projects needing a GC or would you be open to help if needed? The areas of town you mentioned are for sure popular, but there are many up and coming neighborhoods in town that would provide you with your stated criteria of accessibility to prime locations. 

    Feel free to reach out, I would be happy to talk shop or dig into some details with you. 

    Be well, 

    Angela

    0Reply
  • Joseph High
    Specialist · Nashville, TN · Member since 2019 · 75 posts · 50 votes
    6y

    @Chris Bowe I work for a PM here in Nashville and a big part of my job is finding properties that make sense for investors like yourself. Haha, if I had a dollar for every time I heard any investor mention they were looking for something like that, I think I could have already retired! 

    I would say refinancing out of a smaller-multifamily in those Live, Work, Play areas would be pretty difficult. If you could find a property (that works) in those areas - jump on it! That being said, in many cases asset prices have already exceeded what works for a lot of investors. For example, I've seen a duplex going for over 700k near Sylvan Heights!!

    The bulk of the deals that our investors have been buying are not directly in those Live, Work, Play areas, but are still conveniently located to them. The numbers work, and our tenants are close to what they enjoy about Nashville without paying the prices to be immediately there. 

    0Reply
  • Chris Bowe
    OP
    Member since 2020 · 5 posts · 3 votes
    6y
    Originally posted by @Angela Dulin:

    Hi Chris, thanks for the colleague request! I am an agent in town and I have several clients doing exactly what you are wanting to do. My brokerage specializes in investment properties in the Mid TN/Nash area. Basically anything within a 45min-1hr drive radius from downtown.  I personally don't think you would have to sacrifice the cash flow on your first deal, just because its your first deal. You mentioned closing by July 2021, Are you not looking to move to town until then?? When you say "renovations you can do yourself" are you thinking more along the lines of cosmetic upgrades or just not anything too "scary" like foundation issues? Would you steer clear of projects needing a GC or would you be open to help if needed? The areas of town you mentioned are for sure popular, but there are many up and coming neighborhoods in town that would provide you with your stated criteria of accessibility to prime locations.

    Thanks for the reply! Looking to move next summer, but could be sooner than that if we find the right deal. My girlfriend and I are both commercial construction managers, so definitely not afraid of using a GC, but would really like to use this first property as a learning opportunity to build out some home improvement skills. As in, would tackle some pretty ambitious projects on our own if we have the time! Foundation issues would be pretty scary, but with the right contractor team it could be manageable. Hopefully our construction background will help us navigate some of the more involved problem areas. Happy to explore neighboring areas with a knowledgeable connection. I consider myself a bit of an urbanist, so connection to bike network, transit, walkable, tree-lined streets are a major plus! 

    0Reply
  • Chris Bowe
    OP
    Member since 2020 · 5 posts · 3 votes
    6y

    Joseph, thanks for the reply! In your experience, which specific areas have the price points I'm looking for? I'd like to find a location that offers connections to bike networks, transit, walkable streets, etc. I'm not super familiar with Nashville neighborhoods, so any insight you can offer would be incredible.

    0Reply
  • David GoodmanBusiness Member
    Realtor · Nashville, TN · Member since 2020 · 172 posts · 92 votes
    6y

    Hey Chris - Congratulations on the move! Nashville  is an amazing town.

    House Hacking is how I got my start. If your looking for connections in the area, save my info!

    Best of luck,

    David

    615-979-1644
    The Grow Team4.824 Reviews
    WebsiteView Page
    0Reply
  • Elyse Wiser
    Member since 2018 · 3 posts · 4 votes
    6y

    Hi Chris! Realtor here - Duplexes and triplexes are few and far between, especially in desirable areas like you mentioned. You'll find more options within your budget further from downtown but it sounds like walkability and ease of transit are important to you. In order to find something in a great neighborhood close to the urban core, I would recommend looking for a house with a walk out basement instead of a duplex! In Nashville, an owner-occupied Airbnb would also be a great option. Feel free to reach out to discuss more and best of luck with your move! 

    3Reply
  • Luka Milicevic
    Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
    6y

    @Chris Bowe

    What Elyse said is what I would also say.

    A duplex at that budget your best bet is to look outside of the urban core.

    We don't really have much public transit here to begin with. Nothing like what you are used to in NJ at least. 

    There aren't that many triplexes and quads down here. 

    Are you open to house hacking? 

    0Reply
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