All Forum Posts by: Tanner Hale

Thanks Andrew, I too agree that we will see a huge pop when things start to really subside and open back up to its full capacity.  

Thank you.

@Courtney Trahan Yes, we had to get creative. Right when COVID "hit" we increased our minimum night stay so that we could lessen our liability. We found misplaced tornado victims that needed a big place to stay (and had insurance money to help.) We also landed a couple tenants where we rented the property by the bedroom. However our saving grace was a sales company out of Utah with whom I had connections and we cut a deal to house many of their temporarily relocated salesman in Nashville.

Investment Info:

Large multi-family (5+ units) buy & hold investment in Nashville.

Purchase price: $2,800,000
Cash invested: $680,000

We purchased these four homes with the intent to utilize them all as Airbnbs. They are in prime location (8min from broadway), beautiful views of downtown Nashville and they are brand new with a professional designer touch on everything. COVID hit right when we finished furnishing them up and waiting on our STR permits from the city. We have transitioned them all to medium term rentals until things clear up from COVID.

First lesson learned: Always always have a plan B. (Still cash flowing $1,000 per unit as long term rentals)

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

I got a taste of my first STR property in 2018 and have always been looking for ways to scale the Airbnb model.

How did you find this deal and how did you negotiate it?

I found this deal through a broker, the properties were under construction and we knew it was exactly what we were looking for so we made pre market offers and tied the properties up before they ever hit the MLS.

How did you finance this deal?

I raised private capital to help with soft costs (furniture, TVs, supplies, etc) to get ready for Airbnb and we bank financed the rest.

How did you add value to the deal?

We added value by obtaining the necessary STR permits and professionally furnishing the home so we could convert the single family residence into a "hotel like" asset.

What was the outcome?

TBD- COVID hit right when we finished the properties. We have since pivoted and placed medium term tenants into the properties until things clear up.

Lessons learned? Challenges?

Always have a plan B, C and D.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Steve Frye- He is a STR specialist located in Nashville, TN.

Message me for info.

Sure, timing may not be ideal. However whenever there is a drastic change in the market (and I think this is just the beginning) there is opportunity. It's important to be realist and not an optimist during these times. Look for the "RIPPERS!" (no brainer deals) =)

Investment Info:

Single-family residence buy & hold investment in Nashville.

Purchase price: $3,800,000
Cash invested: $1,100,000

We purchased six STR approved homes on average for 595,000 each. They were nothing but foundations poured at the time. We tied them up and sat on them for nearly 6 months. By the time construction was completed and we had closed on the properties the developer listed the last two homes at $779,000 each. That's nearly over $900,000 in appreciation! We've since had the 6 listings open for just shy of a months and we've already broken $50,000 in revenues.

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

The STR cash flows

How did you find this deal and how did you negotiate it?

We leveraged high quality relationships to find the deal pre MLS.

How did you finance this deal?

Conventional loan/Partners

How did you add value to the deal?

Professional designed and managed.

What was the outcome?

TBD

Lessons learned? Challenges?

Zoning changes are in discussion w/ Nashville Metro, it's something to pay close attention.

Investment Info:

Single-family residence buy & hold investment in Nashville.

Purchase price: $3,800,000
Cash invested: $1,100,000

We syndicated 6 single family homes just outside of downtown Nashville, TN. All 6 homes are managed and utilized as short term rentals by our in-house property management team.

How did you find this deal and how did you negotiate it?

We leveraged high quality broker/agent relationships to find the deal.

How did you finance this deal?

Conventional financing 80% LTV

What was the outcome?

The developer built 8 homes total. We purchased 6/8 homes. (never listed on the mls) W construction was completed the developer listed the last two home for over $150k each than what we had just purchased the other 6 homes. The cash flows are strong and we are thrilled about the instant appreciation.

@Devan Mcclish We also operate our own in house PM business too. Thanks for offering. 

We’re about a month w/ our listings live and we’re pumped after seeing the numbers. I’m absolutely interested in picking up more in Smashville! Send me your properties you want to unload and I’ll take a look. 

Hi Connor, I'm new to the Bigger pockets forum. Are you just sharing one of your investments or are you looking for help with anything. I just recently purchased some properties in Nashville that will be utilized as short term rentals. The numbers are great!!