While Nashville is famous for being the center of the music industry, especially for country music, it is also home to a flourishing real estate market. Because of the low cost of living and growth in the tech industry, this area has a growing demand for housing.
As more and more people are thinking of migrating to Nashville, investors are more likely to invest in its properties.
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Snapshot on Nashville’s Real Estate Market
Before getting into the specifics on which neighborhoods to invest in real estate properties, below is a snapshot of the metrics for the Nashville real estate market using an investment property calculator.
- Average real estate property selling price: $449,000
- Average gross monthly rental: $2,950
- Average monthly rental income: $1,830
- Average rate of cash on cash return: 9%
- Average Airbnb cash on cash return:2%
Real estate investment property selling price is relatively affordable for an investor. While, Airbnb rentals have good profitability posting 6.2% cash on cash return.
Now that you have a good background in Nashville, here are neighborhoods where some of the best real estate investment properties are located.
Acklen Avenue Alliance Properties
Acklen Avenue Alliance is the top neighborhood to invest in Nashville having high-income residential properties, and it is also one of the strongest markets for Airbnb rentals. Cash-on-cash return is also excellent and high compared to market average.
It is an excellent neighborhood for Airbnb because of it is safe and where tourists usually stays. The crime rate in the area is also relatively low with only nine counts of arrests in 2018.
Check out this site for some property recommendations.
- Average property selling price: $575,00
- Average rental price: $6,790
- Average monthly rental income: $1,630
- Airbnb cash on cash return:5%
- Airbnb occupancy rate:8%
Historic Waverly Place Properties
The Historic Waverly Place is home to one of the most traditional houses, yet the selling price is affordable, and Airbnb occupancy rate is at 55.2%.
It is a great neighborhood for investments since the crime rate is one of the lowest in Nashville. Furthermore, it is near the John T. Moore Middle School, which is a great school for children.
- Average property selling price: $495,000
- Average rental price: $4,700
- Average monthly rental income: $1,860
- Airbnb cash on cash return: 1%
- Airbnb occupancy rate: 2%
The Gulch Properties
The Gulch has a total population of 456. Being strategically located near public transportation, schools, trendy bars, and hip restaurants, it is also frequented by many tourists. Housing in the neighborhood are mostly high-rise condominiums and apartments.
It is a great investment because properties in The Gulch offer value for money as well with returns are at 8.6% with a high occupancy rate of 54.7%. Moreover, the government is looking to revitalize The Gulch, so it is a great time to make an investment on it.
- Average property selling price: $650,000
- Average rental price: $5,600
- Average monthly rental income: $2,210
- Airbnb cash on cash return: 6%
- Airbnb occupancy rate: 7%
West End Park Properties
Majority of West End Park properties are midsize homes that are valued high. The community is very classical look with infrastructural developments still standing back from 1952.
Most importantly, West End is known for Nashville’s Centennial Park, which is the mecca of music and entertainment. This will make your property investment worth it and guaranteed to produce returns quickly.
- Average property selling price: $580,000
- Average rental price: $4,880
- Average monthly rental income: $1,970
- Airbnb cash on cash return: 3%
- Airbnb occupancy rate: 4%
East Hill Properties
East Hill is one of the historic neighborhoods of Nashville with many cottages that were refurbished and remodeled to fit modern design. Even though properties sell at a lower price, it still offers contemporary homes.
East Hill properties are lucrative since they are near trending dining areas. Homes sell very quickly here because after moving in, people rarely want to leave. So, if you are looking for an investment property that you want to sell at a higher price, you may want to look at this.
- Average property selling price: $384,000
- Average rental price: $3,390
- Average monthly rental income: $2,010
- Airbnb cash on cash return: 6%
- Airbnb occupancy rate:1%
Noel Watkins Grove Properties
Noel Watkins offers homes that are huge but are competitively priced. Similar to East Hill, homes in it are very classic and traditional. However, the occupancy rate is still high and, likewise, cash returns.
It is also near Hillsboro High School and Glendale Elementary School, which makes your investment property lucrative for families who are looking for homes close to schools.
- Average property selling price: $650,000
- Average rental price: $5,600
- Average monthly rental income: $2,210
- Airbnb cash on cash return:6%
- Airbnb occupancy rate: 7%
Conclusion
Being the dubbed Music City and home to tech companies, it is not shocking that the Nashville real estate investment property industry is booming. Now you know what the best real estate investment properties are in this city and where to find them. The sooner you make your investment, the faster you will make money from it.
