from Allen Perry
People ask me all the time if they were to buy a Rental property, what should they buy?
Normally the conversation is followed with quite a few questions about what they would want, in more detail. What are your long-term goals? What types of properties would you want to own long-term? Do you want to flip homes/build homes?
If you’re just getting started and looking for a long-term Rental property in this current Market, I tell people that they have multiple options:
1. Buy a Duplex in the Nashville area: Spend $300K-500K for a Duplex or Triplex that is probably in rough shape, renovate it, and try to get 1% back every month in Rental revenue, if possible.
2. Buy a Single Family Home or Condo in Nashville: Also try to get to this 1% rule if possible, but this is harder to do.
3. Buy a Short Term Rental in Nashville: Nashville has some very specific and strict rules about doing this, as many properties are not zoned to be used for Short Term Rental purposes…but, we can help you navigate this so that you can get a Permit and do this successfully.
4. Buy a cabin in the Gatlinburg area: The highest return we have seen is in Gatlinburg in a Short-Term Rental Cabin, and this is the best ROI we have seen in the last few years – as most of these make 10% to 12% every year. This is what I would recommend the most right now for a number of reasons. The sweet spot for these cabins are ones with 4-5 bedrooms. The 4 bedroom cabins are grossing about $80K-100K in Rental revenue, while some of the 5 bedrooms we’ve seen gross between $100K-150K.
If you’re interested in learning more about investing, or have Real Estate needs of any kind, our expert Team is here to help you every step of the way!