All Forum Posts by: Carrie Carlton

There is a man on the Real estate investor page for Nashville that is always posting stuff about wanting to finance deals. Ira Wood. I would recommend joining that group to contact him.  I imagine his terms will be higher then conventional , but is an option. What area of Nashville is it ? I am open to discussing options as a potential partnership as I can provide financing. Also what about asking the investor you work for? Lastly, larger places such as 3 bedrooms are not my favorite to rent, because of roomates. I have found I am more successful with smaller places, but I do find multifamilies most appealing so I applaud you on that. 

Check out East Nashville, but honestly Nashville is so hot here that there is not really an area that I would stay away from. Only area that comes to mind that I would not invest is Napier homes, but their are plenty of people who would disagree with me.

I have a property that is pretty versatile in East Nashville (South Inglewood) that I currently use as a STR. It is originally a single family home, but the upstairs has a separate entrance so I rent it as two apts. There are currently permits available last I checked. I am giving serious thought on selling this summer/ fall. I do think you should definitely read up on pending regulations and permit requirements. This property is also zoned duplex so you could build another separate structure as the builder across the street is doing. Asking 420k. Again I have only done VR in Nashville and it is booming, but the word is out and everyone is wanting a piece. l think pending legislation, if passed, will ultimately cause many to get out which will lower competition. Codes has done a terrible job enforcing the laws and taxes they currently have, but we are starting to see non permitted properties bite the dust. A lot of arm chair host are starting to see the work that is required to maintain a permit (that they never held in the first place) and are getting out. Plus the taxes are pretty steep and take a large bite in your profit.

I just sold a house over in that area. I lived in it when I was in grad school.  While that house would be gone yesterday in the Nashville market, Knoxville is much less competitive and cheaper. The area is seeing some revitalization from when I lived there in 2008 to 2011. That being said it is WAY overpriced for the area.

I invest in the Nashville market and I think our friend is being extremely cautious saying one needs a 100k in reserve for the Nashville market. His level of risk tolerance is different than mine. With that being said, it appears he started investing in 2015 which was a drastically different playing field in Nashville than 2013 and 2014. So I can see why he is more conservative because Nashville is reaching a peak. I recently sold a house in the Knoxville market and the prices are MUCH less than Nashville. I will agree with that point.  My path is/was not a conservative one, but I weighed the risk with each deal and put a lot of sweat equity in. Also I was really lucky  (skilled?) with the timing of the market. 

I am seriously thinking of selling the house I lived in a year ago. I bought it for 206,500 in Feb 2012. The house across the street just sold for 420,000. I think that is in the ball park for what I could get. I wouldn't have to pay capital gains because I lived there.

The main house has two separate apartments and a tiny house out back. I netted  40k in 2016 but that won't happen for 2017 because I had to shut the tiny house down. I estimate I will net 25 to 30k this year.

I am tired of managing the property so there is that, but if it makes sense I will stick with it.

I do feel and have noticed that EVERYONE is getting into Airbnb and I have this gut feeling that now is the time to get out. Legislation is changing and people are overpaying for properties and not adequately doing their homework.

I could potentially walk away with 180 to 200k. The next question is what would you do with that money? I would put 50k back for savings invest some and wait until we have to have a downturn at some point.

What do you think?

Yes I have found it necessary to build a team to be where I am now. Yes you can turn it into a full-time job if you had enough units, but there are a lot of variables that I would want to know before doing that. Nashville for example is finally policing permits. So we are seeing a lot of listings being removed. Nashville requires sales tax 9.75% plus hotel tax 6% plus 2.50 per night to paid on the guest behalf. Now many people are not paying this, but eventually the city will come around and police that as well. So you have to add that into your price. There is cleaning fees, repairs, dealing with early/late check ins, complaints etc. After doing it a while, I just don't find it worth it. And the people who say they find it financially worth it, I suspect are not properly permited and/or not paying the appropriate taxes. 

They are very successful. I think everyone and their mother is getting into it. Nashville and the legislation is coming down hard on investors and frankly I am tired of dealing with it. The properties have appreciated nicely and I am ready to invest in something else. I feel like most people are getting into the game late. I have been doing it since 2014 and have seen a noticeable increase in competition thus decreasing revenue. I think pending Metro regulations are going to come down hard on investor owned Airbnbs and I want to get out before the mass exodus. Plus I lived in the property and can sell without paying capital gains. Running 3 Airbnbs is a lot of work. I have long term rentals and the amount of work is night and day. Do Airbnb make more? Absolutely but if you are truly paying the taxes that metro askes you to pay the margins are slim and maybe not worth it. 

I don't know what your time table is, but we are going to puting 3 Airbnbs on the market in July. So going to be selling all the furniture. 

What would you consider North Nashville ? I have two SFH I consider North Nashville proper, but I find some people consider cardinal direction North to be North Nashville. I consider North Nashville to be South of Bordeaux and west of Germantown.