All Forum Posts by: Eric Rice

@Eric Rice

Are you sure you're talking about the right Franklin TN? That's the furthest description of Franklin that I could think of. 

I live in Franklin and it is the goal of everyone in the area to eventually move there. My wife and I constantly talk about it - Once you move here and experience it, there is no going back to your old life. 

The pros you mentioned are spot on, but I have to add a few. 

The city is incredibly clean and well maintained. Can't emphasize that enough. I bike early in the morning - 5am. The landscaping crews are already out at that time with headlamps mowing grass, mulching, trimming, etc. Sanitation department has brush pick up every week. Leaf pick up through out the fall and winter. The city has predominantly buried utility lines so there are few overhanging power lines. This doesn't seem like a big deal until you actually go somewhere else and notice how big of a deal it is. They implemented under ground utilities decades ago so even the old subdivisions built in the 90s don't have overhanging power lines. 

You're skeptical about the growth??? Have you seen what's in the pipeline? Do you know how many companies that you've heard of are headquartered in Franklin? Have you seen how many companies are moving their HQ to Franklin? 

Nashville has had a mass influx of young professionals over the last decade. They are living predominantly in the high rise apartments downtown. Where do you think they are all moving to once they have children and need more space and better schools? 

I can't recommend the place enough. 

In terms of investing here, it depends on what you are looking for. The rent to value is not great. It's mostly class A owner occupied. There are places that will yield better rent to value ratios. It just depends what you want. I had an investor a few years ago where all he cared about was being in the best school zones. So this location worked for him. 

If you want to talk more please reach out. I know the area very well. 

I'm in desperate need of some guidance or reassurance at the moment. I am feeling overwhelmed by options, things I've learned, and fear of the future.

Right now my wife and I are trying to make a huge, potentially life altering, decision. After reading books, watching videos, and learning a lot about the ins and outs of real estate investing, we are at the point where we need to make a move (or decide not to).

We have some money we would like to invest, and we are thinking real estate would be the route to take. We absolutely need this investment to become an income stream for us. We will likely move wherever we decide to invest.

We have been looking at a few different places. I'll share what we are seeing/thinking and invite any corrections or advice.

1. Austin, TX: 

Pros: We like the growth and the business development going on in the area. There are areas where we believe over the next 10 years the job growth will aid us in some nice appreciation. The amenities are fantastic (shopping, restaurants, activities, etc.)

Cons: We are trying to get away from crime and other "factors" about LA that we dislike, and in many ways this city feels like a mini-Los Angeles (homelessness, crime, etc.).

2. Franklin, TN:

Pros: We love the place, the people are nice, and it seems to have a lot of what we are looking for. It appears that there has been a lot of growth here in recent years. Fantastic schools.

Cons: I'm skeptical about how well the growth will continue on over the next 5+ years, especially with the questionable economic situation ahead. When we visited Franklin and the surrounding areas, there is an ocean of new building developments. The builders keep jacking the prices up and finding a good deal (or even knowing what a good deal is) is difficult. Other areas nearby that were touted as being major growth hubs like Murfreesboro appear to already be experiencing some price declines. Franklin seems to have a little of this, but not as bad. Also, the amenities aren't the greatest. The restaurant options are alright, but the shopping is so-so and you have to drive a long time to get there depending on where you're at.

3. Springfield, MO

Pros: For a city in Missouri, it does seem to draw people in to some extent and there is growth. The real estate prices are much lower and therefore we can diversify the risk across multiple properties potentially. I also have some ties to the area. The property cost vs rental rates in the area are pretty decent. For one half or one third of the cost, I can get similar rental income per property in Springfield that I could get in the Franklin area.

Cons: Appreciation is MUCH slower. Where the rental income shines, the appreciation misses the mark. Amenities are poor, crime is higher, schools aren't great. (Although one area in Willard, which is northwest of Springfield, does have good schools.)

I am also looking at the map of the United States and researching different places trying to find what I'm looking for. I feel like maybe I'm asking for too much with this investment. I want it all. Good amenities, low crime, reasonable prices with decent CoCROI. I'm sure some of you will laugh about it, but I'm just trying to figure out which things I should be sacrificing. This is going to affect my entire family a lot. I want to bring them somewhere they can be happy, but I also want to create a situation where there is a good investment producing income that they can rely on if I'm no longer able to be there.

Thank you for reading my message, and any feedback is very much appreciated.

I'm in desperate need of some guidance or reassurance at the moment. I am feeling overwhelmed by options, things I've learned, and fear of the future.

Right now my wife and I are trying to make a huge, potentially life altering, decision. After reading books, watching videos, and learning a lot about the ins and outs of real estate investing, we are at the point where we need to make a move (or decide not to).

We have some money we would like to invest, and we are thinking real estate would be the route to take. We absolutely need this investment to become an income stream for us. We will likely move wherever we decide to invest.

We have been looking at a few different places. I'll share what we are seeing/thinking and invite any corrections or advice.

1. Austin, TX: 

Pros: We like the growth and the business development going on in the area. There are areas where we believe over the next 10 years the job growth will aid us in some nice appreciation. The amenities are fantastic (shopping, restaurants, activities, etc.)

Cons: We are trying to get away from crime and other "factors" about LA that we dislike, and in many ways this city feels like a mini-Los Angeles (homelessness, crime, etc.).

2. Franklin, TN:

Pros: We love the place, the people are nice, and it seems to have a lot of what we are looking for. It appears that there has been a lot of growth here in recent years. Fantastic schools.

Cons: I'm skeptical about how well the growth will continue on over the next 5+ years, especially with the questionable economic situation ahead. When we visited Franklin and the surrounding areas, there is an ocean of new building developments. The builders keep jacking the prices up and finding a good deal (or even knowing what a good deal is) is difficult. Other areas nearby that were touted as being major growth hubs like Murfreesboro appear to already be experiencing some price declines. Franklin seems to have a little of this, but not as bad. Also, the amenities aren't the greatest. The restaurant options are alright, but the shopping is so-so and you have to drive a long time to get there depending on where you're at.

3. Springfield, MO

Pros: For a city in Missouri, it does seem to draw people in to some extent and there is growth. The real estate prices are much lower and therefore we can diversify the risk across multiple properties potentially. I also have some ties to the area. The property cost vs rental rates in the area are pretty decent. For one half or one third of the cost, I can get similar rental income per property in Springfield that I could get in the Franklin area.

Cons: Appreciation is MUCH slower. Where the rental income shines, the appreciation misses the mark. Amenities are poor, crime is higher, schools aren't great. (Although one area in Willard, which is northwest of Springfield, does have good schools.)

I am also looking at the map of the United States and researching different places trying to find what I'm looking for. I feel like maybe I'm asking for too much with this investment. I want it all. Good amenities, low crime, reasonable prices with decent CoCROI. I'm sure some of you will laugh about it, but I'm just trying to figure out which things I should be sacrificing. This is going to affect my entire family a lot. I want to bring them somewhere they can be happy, but I also want to create a situation where there is a good investment producing income that they can rely on if I'm no longer able to be there.

Thank you for reading my message, and any feedback is very much appreciated.