All Forum Posts by: David Goodman

 Do tell...

Welcome Justin!

yep

Most of the management companies I've replaced for my clients actually do end up costing them more than 10% due to the many fees and unethical maintenance charges they charge. The bar for management companies here is not high.

David Greene talked about interest rates high in order to battle inflation. Inflation which is directly correlated to rising home prices. Prices of homes go up when there isn't enough supply vs. demand. In Nashville we've seen a slight decrease in demand but it pails in comparison to the lack of inventory. 

I will say that builders who are building higher end $800k+ homes in parts of the "up and coming" areas of Nashville are getting nervous because their product is sitting on the market for past 2 weeks. Entry level homes are still flying off the shelves which is where I'm investing.

It's hard to find cash flow in the greater Nashville area. Better to find an agent that can help you find and manage a deal when it comes along. Large turnkey businesses would have a hard time satisfying their buyers with solid cash-flowing properties on a large scale.

Local restrictions has made it more difficult for most homes to qualify for non owner occupied (noo) short term rentals (str). Builders have met this challenge by specifically building developments that are zoned specifically for short term rental use. Because local laws can always change, this is a safe way to get in the the short term rental market.

Short term eligible new builds sell for higher $/sqft because they are harder to come by. In the last year most short term rental eligible new builds did not make it to market. We're seeing a few stay on market now because because of the higher sales price and inflated projections by the sellers.

My suggestion would be to work with an agent that can connect you with builders and sellers that are trading these opportunities off market. This month I helped my client close on an off market short term 3/3 townhome new build that is projected to bring in $65k/year at a purchase price of $650k. Not a bad return for Nashville. It can be done.

Middle TN could be cooling down to where we left pre-covid which was still a hot market. My humble opinion.

go on...? :)

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $500,000
Cash invested: $150,000

Off market triplex in the Wedgwood Houston area.