3-minute readHome sales hit 3,305 closings for August 2023, according to data provided by Greater Nashville REALTORS®. This figure is down 7 percent from the 3,566 closings reported for the
Start Investing in Residential Properties in Nashville
Dated: August 31 2023
With the booming economy and population growth in Nashville, investment properties are being sold faster than ever before. Residential property is a stable, long-term investment that provides tax benefits and has the ability to generate steady cash flow. If you’re looking for a residential investment property in or around Nashville, RE/MAX Homes and Estates, Lipman Group has the insight you need.
Lipman Group owner and Broker, Larry Lipman, provides insights today about key components to take into consideration when searching the Middle Tennessee area for the right residential investment property.
What Neighborhoods Are Good for Investment Properties in Nashville and Middle Tennessee?
The past three years have been a whirlwind in real estate. Properties are selling faster than ever before at higher price points than they typically would. Inventory is lower than usual, and sellers definitely have the upper hand. Buying a residential investment property in the Nashville and Middle Tennessee area right now isn’t for the faint of heart. With the high demand for homes and the consistent rapid growth of Nashville, finding properties within the city limits can be time-consuming and costly. “It used to be that we could talk about certain pockets or areas of Nashville that were perfect when looking for investment properties. At the moment, it seems like every neighborhood around Nashville is expensive … Right now, I would suggest looking on the Northside for properties and even as far as Springfield and Clarksville,” says Larry. These areas outside of Nashville still offer close proximity to the hustle and bustle of the city while providing more land, larger homes, and unmatched affordability. Depending on the type of property you’re in the market for, the suburbs of Nashville could be a great fit for your investment needs.
Should You Look at Single Family Homes or Condos to Invest In?
When trying to select a residential investment property, it’s important to determine if you’re interested in a condominium or single-family home. “Traditionally, single family homes appreciate faster than condos,” explains Larry. “There is usually more demand for a single-family dwelling over condos, so it depends on what your style is and what you’re planning on using the property for.” Both options have their pros and cons. If you want a property that you’ll rent out or use for short-term stays on sites such as Airbnb, you’ll need to consider the rules set in place by the neighborhood or building management. “With condos, a lot of times you will run into community guidelines or HOA rules that put a cap on the percentage of units that can be rented out at any given time,” says Larry. “The process for getting approval to rent can be lengthy and tedious.” Ensure that prior to searching for investment properties, you do your research and decide what it is you’ll use your property for. You’ll also want to determine a timeline that works for you. Starting the search with a solid plan in place will save you time, money, and stress in the long run.
Older Homes That Need Work Are Worth Considering for Investment Property.
Once you’ve started the search for an investment property, don’t shy away from homes that may need some renovation and updating. These homes are typically priced to sell, and while they will require more time and attention than a move-in ready house, it may just be the answer to finding a great property despite the limited supply chain. “Some investors that I’ve worked with in the past look in particular areas where houses have been untouched for 30 or 40 years and need a lot of love,” says Larry. “Finding those is a bit of a challenge right now as most sellers have high expectations on the value of their home, regardless of the condition.” Patience is key when it comes to finding the perfect residential investment property to fit your needs!
Hire an Expert to Help Find Your Investment Property!
Residential investment properties in Nashville are a great addition to any portfolio, but finding the best house or condo for your needs can require time and research. Working with experienced Realtors at RE/MAX Lipman Group can help make the process of finding an investment property easier and more streamlined than doing it all on your own.
Ready to start investing? We’d love to hear from you. You can contact us here. We look forward to speaking with you!
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