4 unit Airbnb deal in Nashville

[Tanner Hale]

Investment Info:

Large multi-family (5+ units) buy & hold investment in Nashville.

Purchase price: $2,800,000
Cash invested: $680,000

We purchased these four homes with the intent to utilize them all as Airbnbs. They are in prime location (8min from broadway), beautiful views of downtown Nashville and they are brand new with a professional designer touch on everything. COVID hit right when we finished furnishing them up and waiting on our STR permits from the city. We have transitioned them all to medium term rentals until things clear up from COVID.

First lesson learned: Always always have a plan B. (Still cash flowing $1,000 per unit as long term rentals)

What made you interested in investing in this type of deal?

I got a taste of my first STR property in 2018 and have always been looking for ways to scale the Airbnb model.

How did you find this deal and how did you negotiate it?

I found this deal through a broker, the properties were under construction and we knew it was exactly what we were looking for so we made pre market offers and tied the properties up before they ever hit the MLS.

How did you finance this deal?

I raised private capital to help with soft costs (furniture, TVs, supplies, etc) to get ready for Airbnb and we bank financed the rest.

How did you add value to the deal?

We added value by obtaining the necessary STR permits and professionally furnishing the home so we could convert the single family residence into a "hotel like" asset.

What was the outcome?

TBD- COVID hit right when we finished the properties. We have since pivoted and placed medium term tenants into the properties until things clear up.

Lessons learned? Challenges?

Always have a plan B, C and D.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Steve Frye- He is a STR specialist located in Nashville, TN.

Message me for info.