Moving to Nashville, looking for housing/rental. Some questions?

Question

Hi everyone! This is going to be a bit of a brain dump, I appreciate any help!...

I'm moving to Nashville to begin residency at the Vanderbilt Medical center. My original plan was to simply rent, but my dad has proposed the idea of a joint venture. Me and my wife and 3 kids will be living in the home for a minimum of 4 years, after which point we would consider either selling or holding long term as a rental. The budget is currently at about $315,000 (this would be the top and wouldn't be able to do updates/repairs if we purchased at this price). We are planning a standard 20% down loan, but have also thought about using a physician loan, or fha 203k if we find something that we could force some equity through repairs/updates. I've been researching areas within about 25 minutes of Vanderbilt, and have landed on a few areas: 1. Bellevue 2. Donelson 3. Hermitage 4. Goodlettsville 5. Brentwood (or the area between Brentwood and Antioch). Does anyone have any advice on these areas? Or are there any other areas we should be considering in our price range and future goals? I've heard the crime is a little high in places like Madison, or areas north of Nashville, is this accurate?

This would be a first for me and my dad, as neither of us has purchased a rental before. Trying to learn how to analyze properties has lead me to the (maybe incorrect) conclusion that many homes on the market in these areas won't cash flow well if used as a rental. Any thoughts on this? Or things we should be considering? Also, it seems houses are selling extremely fast, often above the asking price. I've always thought this was a sign the market might be a bit overvalued. I know Nashville has been growing like crazy, and no one has a crystal ball, but any thoughts on the general state of the market in Nashville and potential action into the next few years?

Also, I'm still open to the idea of renting, so if anyone has any leads on a landlord who would like some residents with a great credit score, no pets, and never party, I'd love to hear!

Thanks everyone!!

Cullum Stirling · Answer

Hi Jaden, congrats on working your way towards knocking out your residency. These guys will help take care of you and are extremely helpful.

I am also an agent and newer investor. My first property was a house hack in Southeast Nashville area.

3 years ago I thought the Nashville market was overpriced... 3 years later properties continue to sky rocket. The great thing with Middle TN is that there's a vast diversity of thriving job markets that seem to be helping to maintain the momentum.

If you ask me, plan on taking time like you said to explore the various areas and get a fell for what fits you. Obviously a short visit is completely different than actually living somewhere.

You're best bet might be renting temporarily, taking a few months to get to know the various areas, and then jumping on a deal after the fact.

Like you said, none of us know what the future holds. Current home prices are escalating quickly, so the risk is that holding off brings a higher home price down the road.

David Goodman · Answer

@Jaden Cook

Hey Jaden - welcome! My name is David Goodman. I’m an agent and investor in the area. Happy to help.

Maddison and Antioch are going to be easier to find sfh in that price range. I’m originally from Houston so these areas aren’t incredibly dangerous feeling by comparison, but these are areas that the locals seem less desirable areas.

Are you open to a townhome or condo? How many beds or bath do you guys need?

Congratulations on your upcoming move!

Thanks,

David Goodman

Luka Milicevic · Answer

@Jaden Cook

I live in Bellevue and it's probably the hottest suburb right now....followed by Donelson. You can find a townhome in Bellevue for that price. Single fam is going to be tough.

At that price point you are looking at about 5 minutes on market. You will have to put an offer in immediately.

Hermitage and Goodletsville are solid markets, and you can find something more in line with your budget out there. Further from Vandy though.

Brentwood is an A+ residential zone on the Williamson county side. You can afford a townhome on the Davidson county side of Brentwood with that budget.

Antioch is one of the fastest appreciating areas in all of Nashville. Due to affordability. I24 is the worst highway of all time and so the drive into town will be absolutely awful.

Location wise.... Your best bet is Bellevue. Vandy is on the West side and so is Bellevue. Your drive is going to be cake down I40 as it's the least congested highway in Nashville. I'd also consider Pegram which is an exit up.

Let me know if you have any questions.

Grant Haun · Answer

@Jaden Cook

I'd say Goodlettsville is a great balance for your price range, safety, distance from work, and market opportunity. There are several new $250-315k townhomes being built there that could be a good option to live in for a few years and then rent out. My wife and I just bought one for that reason. We signed the contract in September 2020 for $262k, and the new ones being built are already hitting the $300ks. Goodlettsville also has an abundance of older ranch and country homes in desperate need of some updating, so there's some opportunity there, too. The drive down I-65 to midtown is surprisingly quick - 15-20 minutes most days.

Tony Clark · Answer

@Jaden Cook welcome to Nashville! My wife is a nurse at Vanderbilt and loves it, best of luck with residency.

I would agree that Bellevue is one of the hottest suburbs. My wife and I are currently moving to the nations and will be doing a short term rental house hack, as we've found that typically properties that are in the neighborhoods we would want to live in wouldn't cashflow well as rentals, but will as Airbnbs (with proper permitting/registering with the city).

Something to keep in mind is that property taxes are different depending on how close to the city you are. Areas closer to the city have a much higher tax rate than the areas a little bit farther out. Traffic coming up i65 from Vanderbilt to get up north can bottleneck depending on what time of day it is, so my wife and I decided we wanted to stay south or west if we could.

I'm happy to hop on a call to talk more about specific areas and to share how our search went, we'd map from wherever we were looking to Vanderbilt so I've got a decent idea of the drive time from different areas of town!

David Goodman · Answer

Sounds good Jaden

Jaden Cook · Answer

Thanks everyone for the great responses, this has been very helpful! I apologize for being slow to respond. I think I'm realizing how wild the market is currently. We'll see a house that matches what we are looking for and its gone the next day. We have our pre-approval and are ready go given the right opportunity, but neither my wife or feel totally comfortable jumping in without seeing the areas. We'll be there in April for about a week, and will definitely reach out once we are closer. Looking forward to moving to Nashville, we keep hearing wonderful things.

Moving to Nashville, looking for housing/rental. Some questions?

Moving to Nashville, looking for housing/rental. Some questions?

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