All Forum Posts by: Laura Winegardner

Thanks all. I'm going to get started on the permitting today. Sounds like since it's under $25K I can submit for the permits myself. 

Hello! Newbie here - 2 weeks into my first property, I plan to house hack short-term rental (live in basement, rent main house) in Nashville. I'm doing some improvements before listing on Airbnb, including installing a small half bath in the attic bedroom. I didn't do my due diligence to learn about permitting before my contractor started work.  I'm now hearing an unpermitted bathroom could cause issues with insurance claims, city fines, and resale. Oof. 

Some tell me it's not a big deal and everyone does it. Others say I definitely need a permit before proceeding. The space will not have head clearance to meet code (only 6' 4" like the bedroom) so my options are to cancel the project or proceed unpermitted. What would you do?

Thanks for the reply @Luka Milicevic. I'm looking to house hack in Nashville. I've been approved for $700K without factoring in rental income and I don't need more than that. I can comfortably afford $450K without the income from an STR or LTR so that is my current budget. I'm wondering how risky/wise it would be to increase my budget to $550ish knowing that I'll be earning rental income to help cover the mortgage.

Thanks for the insights @Nicholas L. I've had mixed guidance on the topic so I appreciate your perspective. My lender approved the higher mortgage already. STR rules and regulations changing is definitely a risk factor. I think in that case I'd have to change to a MTR or LTR. Primary reason for wanting to do STR is because I'm interested in gaining hands-on experience with this strategy so I can apply it towards longer-term goals in more traditional vacation markets.

Hi all - I hope to start my REI journey with a house hack in Nashville (live in basement/smaller space with separate entrance, Airbnb primary living space). I've been told that it will be difficult to find a property in a good location and with the budget that I can afford without rental income. Would it be wise or unwise to factor income from the STR into my budget therefore affording me a higher purchase price?

I understand this is a personal risk decision and I'd love to hear pros/cons/things to consider from the Bigger Pockets community. Thank you!

Thank you for the thoughtful reply @Luka Milicevic! I've also appreciated you reading through your insights on other posts in the forum.

Scenario 1 sounds like the right first move if I can find a place in my budget. 

Hello Bigger Pockets Community! I’m a Nashville renter hoping to start my real estate investing journey sooner than later. I’m on a mission to create accessible spaces that help people develop/deepen their human connections and live more fulfilled (and fun!) lives.

My 10-year goal is to own and operate 2-4 short-term rentals in lake-based vacation destinations and provide add-on hospitality services to further my mission and cash flow. Now how to get there is where I would greatly appreciate some guidance/feedback to help focus my learning and analysis!

House hacking+STR is the entry strategy I'm exploring. I have $40K capital available today and I'm able to put $3K/month towards mortgage, insurance, expenses, etc. A $20-30K private loan from a family member may be an option if needed.

My near-term goal is to get hands-on experience as an STR owner/property manager and begin building my network of real estate pros, vendors, and fellow REIs. I'm single and have W-2 fully remote career so I have quite a bit of flexibility. Here are a few scenarios that I’ve been playing around with:

Scenario 1: Buy a Nashville property with two separate living spaces (e.g. primary space + basement/attic/adu with separate entrance). Live in the accessory space and STR the primary space. Assuming it will need to be owner-occupied to STR, if I need to move out within 2-5 years I'd transition to MTR or LTR.

• Pros: Least disruptive to my current lifestyle, gaining experience in a vacation destination aligns with my long-term goals
• Cons: Highly competitive and expensive market, NOO STR is very unlikely for my situation, finding a property in an area that's appealing to tourists may be difficult.

Scenario 2: Buy property in a market adjacent to Nashville without owner occupancy requirements for STRs (e.g. Mt Juliet. Live in the property for one year while periodically renting out as an STR when I'm out of town/staying with friends. Transition to a full-time STR after moving out. Return to renting for my primary residence in Nashville.

• Pros: Ability to NOO STR, more affordable, less competition
• Cons: Not a vacation destination, lifestyle disruption for a year, added cost of rent after moving out

Scenario 3: Buy a property on/near a lake 90 min or less from Nashville (e.g. Center Hill Lake or Tims Ford Lake). Live in the property for one year. Rent it out as an STR when I'm able to be out of town/staying with friends. Transition to a full-time STR after moving out. Return to renting for my primary residence in Nashville.

• Pros: Ability to NOO STR, allows me to get started on my long-term goal of owning a lake property sooner rather than later
• Cons: Limited inventory, lifestyle disruption for a year

I have a lot to learn and welcome critical feedback and insights from this community. I’m open to all creative ideas that align with my goals. Thank you for helping me to get started!