Guide to Nashville Real Estate Investing
More than likely, you already know the Nashville real estate market is booming! You don’t need convincing that you want to invest in Nashville real estate. You simply want in.
Still, you probably have lots of questions! What are the hard numbers? What will be the most profitable investment options for me? Where in the city should I invest?
Rochford Law & Real Estate Title has gathered some hard numbers and facts to help guide your decision!
- What You Can Earn from Investing in Nashville Real Estate
- Investment Options in Nashville
- What Are the Top Nashville Neighborhoods?
- Get In – Now!
What You Can Earn from Investing in Nashville Real Estate
A flourishing market means earning potential. And, in Nashville, it’s not so much a matter of what if as how much.
Even everyday homebuyers are becoming investors overnight. In the last year alone, Nashville home values have jumped 22.3%. In the past five years, these homes have increased 81% in value!
From a true investment perspective, you know that what you choose to invest in directly affects your ROI. According to Mashvisor’s “Nashville Investment Analysis,” the median sale price for a nearly 2,000 square foot property is $504,500, and the average rental income for a single, traditional property is $1,572.
So, the real question is: Where do you want to put your money?
Investment Options in Nashville
The beauty of investing in a market like Nashville? You have several profitable options:
The value of single-family homes has skyrocketed in Nashville. And with the influx of families and young professionals alike to the city, many of whom have higher-income jobs, there are not enough sleek, trendy, and affordable single-family Nashville homes to go around.
Many investors, then, have purchased fix-and-flip properties. In fact, Nashville’s fix-and-flip property area sales in the final quarter of 2020 were higher than the national average, not to mention bringing in an average of $86,200 in gross profits for investors. What’s more, that average profit increased by nearly $30,000 in 2021!
At the same time, new construction of single-family homes are in high-demand, and especially in certain neighborhoods. Investors who are willing to play the waiting game can benefit from selling a single-family home to builders who want to demo an original structure for an entirely new build.
Multifamily housing is among the best opportunities for Nashville real estate investors. Why? With the Nashville population growing at nearly double the national rate, as well as rapid growth in employment, the city needs more housing for young professionals and multi-family housing.
Investors who are interested in corporate housing, specifically, are eligible for a unique opportunity: Both Amazon and Oracle are expected to transform the city. With Amazon’s new offices sitting at the entrance to downtown – in Nashville Yards – and Oracle setting up camp on more than 60 acres on the riverfront in East Nashville, new multifamily housing will be essential to accommodate the job opportunities.
As for the income you can bring-in from a single apartment, 74% of the rental units in Nashville are being charged between $1,001 and $2,000 per month, with the average rent going for $1,694 for 887 square feet.
A smart but alternative investment in Nashville: vacation rentals. In recent years, Nashville has broken its own tourism records and been a top destination for both domestic and international visitors. Rental property by the Cumberland River, close to downtown, is particularly popular for the nightlife, shopping, and access to local attractions.
Now for the numbers! Despite the hassle of regular maintenance and care of vacation rentals, investors are finding they are too tempting to pass up. According to Mashvisor, Nashville Airbnb monthly income is – hold onto your hats! – currently averaging:
$2,043 monthly profit / one room
$3,014 monthly profit / two rooms
$3,742 monthly profit / three rooms
$5,825 monthly profit / four rooms
What Are the Top Nashville Neighborhoods?
Neighborhoods in the city and the Greater Nashville area are all experiencing growth. And depending on who you ask, you may get a number of answers for which neighborhoods they believe are “the best.” There are a handful of Nashville neighborhoods, however, that are consistently showing investment potential.
Germantown, Edgehill Community Garden, and The Gulch are currently trending high when it comes to property price, cash on return, and rental income. But a few other key players –with their proximity to Vanderbilt University and Belmont University – include Midtown, Music Row, and Belmont-Hillsboro.
Get In Now!
PricewaterhouseCoopers ranked Nashville as the #1 real estate market with the best overall prospects for 2022. The demand for rental property is high, and housing prices are relatively affordable. What are you waiting for?
Rochford Law & Real Estate Title will protect your commercial or residential investment with our experience, resources, and dedication. Whether you need us to guide you through the process – negotiating, preparing contracts, reviewing terms, securing title insurance, closing – or simply need a specific service, we would love to serve you! Contact us today.