McFerrin Park Stud

[Chad Smith]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $307,000
Cash invested: $10,000

We moved here in July of 2018 and I quickly realized we only had a small window until most of the best investment areas in East Nashville would start heading through the roof. I researched like hell and drove streets up and down...choosing a top few neighborhoods we calculated would be long-term winners. We worked with our good friend and agent to keep our eyes peeled and eventually spotted a home that had twice, not once, gone back on the market. We inquired and found out the seller was moving out of the country and needed to sell asap due to prior deals falling through.
We jumped on it and got the home at a great price - with a traditional 20% down. It is a 3 bed, 2 bath with a huge back yard and a spacious attic space that we hope to eventually renovate and turn into a 4/3.

Once owned, my wife and I - with the help of our local, handyman buddy - spent about 2 months (just weekends and nights after work mostly) painted every inch, new carpeting in bedrooms, fixed some wood rot outside, new fixtures, mirrors, appliances, stained the back deck and did some landscaping.

We got the place rented quickly and are earning - after all expenses - a positive cashflow of $450 a month. We are about to refinance the home and drop our payments down about $100/month, so we will soon be at $550/month cashflow.

Since purchasing at the first of the year 2020, the home has grown to about $85k in equity.

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

I read all about the East Nashville development coming to the river and up Dickerson.

How did you add value to the deal?

I did a lot of the work myself and partnered with a part time worker at the local Lowes to assist with some items and get me deals on appliances.