If you’ve already been convinced to invest in Nashville residential income properties by our blog “Is This the Time to Buy a Nashville Investment Property?”, then you must be wondering about the best neighborhoods for buying Nashville investment properties at the beginning of 2018. You’ve come to the right place as here we will go over the best places to buy Nashville residential income properties.
Related: Why Nashville Investment Properties Are Hot
A Quick Summary of the Nashville Real Estate Market for Investment Properties
Before we get to the specific neighborhoods where you should be buying Nashville residential income properties to rent out, let’s have a quick look at the metrics of the Nashville rental market as computed by Mashvisor’s investment property calculator.
- Median Property Price: $449,000
- Traditional Monthly Rental Income: $1,830
- Traditional Cash on Cash Return: 2.9%
- Traditional Cap Rate: 2.9%
- Monthly Rental Income: $2,950
- Airbnb Cash on Cash Return: 6.2%
- Airbnb Cap Rate: 6.2%
Sign up for Mashvisor now to get access to our investment property calculator as well as other real estate investing tools to buy the best Nashville residential income properties.
Buying a Nashville investment property is relatively affordable with this median property price though it might not necessarily be the best choice for a new real estate investor still lacking major financial resources. While traditional rentals do not yield major return on investment in terms of cash on cash return and cap rate, Airbnb rentals are bringing real estate investors good profitability. 6.2% is good cash on cash return and good cap rate in nowadays real estate investing world with high competition among real estate investors and rental properties.
To learn more about investing in Nashville residential income properties to rent out, click here.
Go for Airbnb Nashville Residential Income Properties
As demonstrated by Mashvisor’s rental property calculator, Airbnb is the optimal rental strategy in the Nashville real estate market at the moment as it yields higher return on investment. The good news is that renting out on Airbnb is currently legal for Nashville residential income properties. However, real estate investors considering investing in Nashville should keep an eye on current developments as the Nashville Metro Council is expected to vote on a short-term rental phase out bill for non-owner-occupied properties in January 2018.
To start buying Airbnb Nashville residential income properties now in the most profitable and efficient way, click here.
The Best Neighborhoods for Nashville Residential Income Properties to Rent Out
Once again, we’ve used Mashvisor’s investment property calculator, which offers neighborhood analysis in addition to investment property analysis, to prepare a list of the best neighborhoods to invest in Nashville residential income properties to rent out, mostly through Airbnb. Real estate investors will be very happy to see that the return on investment – in terms of cash on cash return and cap rate – is even better than on the city level.
Related: In Which Neighborhoods Should You Invest in the Nashville Real Estate Market?
1. Acklen Avenue Alliance
- Median Property Price: $575,000
- Traditional Monthly Rental Income: $1,630
- Traditional Cash on Cash Return: 1.2%
- Traditional Cap Rate: 1.2%
- Monthly Rental Income: $6,790
- Airbnb Cash on Cash Return: 11.5%
- Airbnb Cap Rate: 11.5%
- Airbnb Occupancy Rate: 55.8%
According to data from Mashvisor’s rental property calculator, Acklen Avenue Alliance is the top place to invest in Nashville residential income properties to rent out as Airbnb rentals. The expected Airbnb cash on cash return and Airbnb cap rate are excellent!
2. CWA Apartments
- Median Property Price: $270,000
- Traditional Monthly Rental Income: $1,650
- Traditional Cash on Cash Return: 4.1%
- Traditional Cap Rate: 4.1%
- Monthly Rental Income: $3,320
- Airbnb Cash on Cash Return: 11.1%
- Airbnb Cap Rate: 11.1%
- Airbnb Occupancy Rate: 54.8%
Another great place to buy a Nashville investment property for Airbnb rentals is CWA Apartments, with good cash on cash return and good cap rate.
If you are wondering already why the estimated cash on cash return and cap rate are the same, this is because Mashvisor’s rental property calculator assumes by default that all rental properties are paid for fully in cash.
Indeed, CWA Apartments is a particularly excellent investment location for new real estate investors as the median property price is very affordable, so financing a rental property there is relatively easy. This is also the neighborhood with the highest return on investment for traditional rentals though the figures are still not too high at all.
3. Historic Waverly Place
- Median Property Price: $495,000
- Traditional Monthly Rental Income: $1,860
- Traditional Cash on Cash Return: 2.6%
- Traditional Cap Rate: 2.6%
- Monthly Rental Income: $4,700
- Airbnb Cash on Cash Return: 9.1%
- Airbnb Cap Rate: 9.1%
- Airbnb Occupancy Rate: 55.2%
Historic Waverly Place is another location which real estate investors interested in buying Nashville residential income properties to rent out on Airbnb should consider.
To start buying Airbnb Nashville residential income properties now in the most profitable and efficient way, click here.
4. The Gulch
- Median Property Price: $650,000
- Traditional Monthly Rental Income: $2,210
- Traditional Cash on Cash Return: 2.3%
- Traditional Cap Rate: 2.3%
- Monthly Rental Income: $5,600
- Airbnb Cash on Cash Return: 8.6%
- Airbnb Cap Rate: 8.6%
- Airbnb Occupancy Rate: 54.7%
The Gulch also offers good cash on cash return and good cap rate for Airbnb rentals in the Nashville real estate market.
5. West End Park
- Median Property Price: $580,000
- Traditional Monthly Rental Income: $1,970
- Traditional Cash on Cash Return: 2.4%
- Traditional Cap Rate: 2.4%
- Monthly Rental Income: $4,880
- Airbnb Cash on Cash Return: 8.3%
- Airbnb Cap Rate: 8.3%
- Airbnb Occupancy Rate: 52.4%
How about buying a Nashville investment property in West Bank Park? Excellent, especially if you plan to rent out on Airbnb.
6. East Hill
- Median Property Price: $384,000
- Traditional Monthly Rental Income: $2,010
- Traditional Cash on Cash Return: 3.6%
- Traditional Cap Rate: 3.6%
- Monthly Rental Income: $3,390
- Airbnb Cash on Cash Return: 7.6%
- Airbnb Cap Rate: 7.6%
- Airbnb Occupancy Rate: 52.1%
Still looking for your top location to invest in Nashville residential income properties? Consider East Hill. The median property price is relatively affordable, while the return on investment for Airbnb rentals is really good.
7. Noel Watkins Grove
- Median Property Price: $417,000
- Traditional Monthly Rental Income: $2,190
- Traditional Cash on Cash Return: 3.1%
- Traditional Cap Rate: 3.1%
- Monthly Rental Income: $4,020
- Airbnb Cash on Cash Return: 7.1%
- Airbnb Cap Rate: 7.1%
- Airbnb Occupancy Rate: 52.9%
Last but not least, Noel Watkins Grove could be the neighborhood for your Nashville investment property to rent out on Airbnb.
Related: Why Nashville Real Estate Has Become So Popular
With its numerous attractions, it comes as no surprise that the Nashville real estate market is a top location for investing in Airbnb rentals at the beginning of 2018. So, waste no time and stat your search for the best Nashville residential income properties on Mashvisor now. The sooner you buy your Nashville investment property, the sooner you will start making money from it.