Nashville Airbnb Investment Opportunity

Listing Description

Listing: Awning - Redfin - Zillow

Airbnb Estimator: Awning

Market Data: Airbnb Market Data

Looking for a charming vintage cottage-style home to invest in? Look no further than 1117 McAlpine Ave, Nashville! This beautiful home is located just a 10-minute drive from Grand Ole Opry, 15 minutes from Nissan Stadium, and 20 minutes from downtown Nashville. The home features 3 bedrooms, 1 bathroom, and 1,306 sq. ft. of living space. The house has been remodeled and includes original heart of pine floors, updated plumbing, and a new kitchen. The home also boasts a full front porch and a two-car detached garage. The property is not part of an HOA and is not located in a flood zone. The owner is even willing to put a new roof on for the full price!

The property is perfect for investors who want to rent it out as a vacation rental or traditional rental. The estimated monthly Airbnb revenue is $5,200, with a cash-on-cash return of 4.4% in the first year. The furnishing estimate is $31,920, while the estimated renovation cost is $7,000 to add a new refrigerator and make additional repairs. The estimated after repair value is $499,900, and the estimated 10-year return is 17.7% per year.

This vintage cottage-style home is listed by Karen Hoff, Broker, CRS, e-PRO of Historic & Distinctive Homes, LLC. You can also ask Awning Agent Humberto Marquez any questions you may have about the property, Awning, or investing. The property is not part of an HOA and is not located in a flood zone. With its central location and charming features, this property is sure to be a great investment opportunity.

The Airbnb Investment Financials

How much does the home cost?

$499,900  

How much will it earn on Airbnb?

$5,200 per month

‍How much will it cost to furnish it?

$31,920.

How much will it cost to renovate?

$7,000

‍How much cash can you take home in the first year?

According to the Awning Analysis provided in the listing, the estimated monthly Airbnb revenue is $5,200. Based on this, the annual gross revenue would be $62,400. The estimated operating expenses for the first year are $29,104, which include property tax, insurance, utilities, repairs/maintenance, property management, and other costs associated with running an Airbnb rental.

‍What is the cap rate for this property?

The estimated cap rate is 6.2%.

All of the cap rates and returns for this property are estimates and are not intended as a guarantee of income or returns. Every investment has risks. It's important to discuss any investment, returns, regulations, laws and projections with a financial advisor, attorney or another fiduciary.

Nashville Short-Term Rental Regulations

What are the short-term rental laws and regulations in Nashville, Tennessee?

In Nashville, Tennessee, short-term rental laws are defined in the Tennessee Code and the Metro Government of Nashville and Davidson County, TN Code of Ordinances. According to the Tennessee Code, a short-term rental is a residential dwelling that is rented either wholly or partially for a fee for a period of less than thirty (30) days.

One important law to note is the new Tennessee law BL2019-1633, which eliminates multi-family zoning from the list of non-owner occupied permit zones and limits new non-owner-occupied rentals to commercial areas of Nashville, effectively barring them in residential zones. Additionally, pending bill BL2019-7 clarifies which units in two-family zoning districts are eligible for short-term rental permits, typically in R6, R8, R10, and R20 zonings.

Overall, those interested in short-term rentals in Nashville should review the Metro Government of Nashville and Davidson County, TN Code of Ordinances for specific regulations and requirements.

‍Is there a moratorium in short-term rentals in Nashville, Tennessee?

There is no moratorium on short-term rentals in Nashville, Tennessee. However, the state of Tennessee and the Metro Government of Nashville and Davidson County have laws and regulations in place that govern short-term rentals. According to the Tennessee Code, a short-term rental is defined as a residential dwelling that is rented either wholly or partially for a fee for a period of less than thirty (30) days.

In 2022, the Tennessee General Assembly was considering legislation (HB 645 / SB 871) intended to protect the ability of Nashvillians to host short-term rental guests in their primary residence. However, the latest hot topic in Nashville short-term rental laws is the new Tennessee law BL2019-1633, which eliminates multi-family zoning from the list of non-owner occupied permit zones and limits new non-owner-occupied rentals to commercial areas of Nashville, effectively barring them in residential zones.

Overall, those interested in short-term rentals in Nashville should review the state and local laws and regulations to ensure compliance. As of now, there is no moratorium on short-term rentals in Nashville, but regulations are subject to change.

Why Airbnb Guests Stay In Nashville, Tennessee

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‍Where is Nashville, Tennessee?

Nashville is the capital city of the state of Tennessee, located in the southeastern United States. It is situated in the north-central part of the state, roughly in the center of the state's border with Kentucky.

‍What is there to do in Nashville, Tennessee?

• Visit the Country Music Hall of Fame and Museum: This museum is dedicated to preserving the history and traditions of country music.
• Explore the Ryman Auditorium: Known as the "Mother Church of Country Music," the Ryman Auditorium is a historic venue that has hosted countless legendary musicians over the years.
• Take a tour of the Grand Ole Opry: The Grand Ole Opry is a famous radio show and concert venue that has been showcasing country music stars since the 1920s.
• Wander around the Nashville Farmers' Market: This bustling market features a wide variety of vendors selling fresh produce, handmade goods, and delicious food.
• Try some hot chicken: Nashville is famous for its spicy hot chicken, which you can try at restaurants like Prince's Hot Chicken Shack and Hattie B's.
• Visit the Johnny Cash Museum and Cafe: This museum is dedicated to the life and music of the legendary musician Johnny Cash.
• Check out the Belle Meade Plantation: This historic plantation offers tours of the mansion and grounds, as well as tastings of Tennessee whiskey.
• Stroll through Centennial Park: This beautiful park features a full-scale replica of the Parthenon, as well as walking paths, gardens, and a lake.
• Catch a show at the Bluebird Cafe: This intimate venue has hosted many famous songwriters and musicians over the years.
• Take a walk through downtown Nashville: The downtown area is full of great restaurants, bars, and shops, as well as live music venues and historic landmarks.
  
  

What kinds of people travel to Nashville, Tennessee?

• Music lovers: Nashville is known as the "Music City" and is a hub for country music, so it attracts music fans from around the world.
• Foodies: Nashville is also known for its Southern cuisine, particularly its hot chicken and barbecue, so it is a popular destination for food lovers.
• History buffs: Nashville has a rich history, particularly during the Civil War era, so it is a popular destination for those interested in history.
• Bachelorette parties: Nashville has become a popular destination for bachelorette parties due to its nightlife, music scene, and Southern charm.
• Business travelers: Nashville is a major business hub, particularly for healthcare and music-related industries, so it attracts many business travelers.
• Outdoor enthusiasts: Nashville is surrounded by beautiful parks and natural areas, making it a popular destination for those who enjoy outdoor activities such as hiking and kayaking.

‍When are the busiest and slowest seasons for tourism in Nashville, Tennessee?

The busiest season for tourism in Nashville, Tennessee, is typically from late spring through early fall (May to September), when the weather is warm and many festivals and outdoor events take place. The peak tourist season coincides with the country music festival season, which runs from June to August and includes major events such as the CMA Music Festival and Bonnaroo Music and Arts Festival.

The slowest season for tourism in Nashville is typically during the winter months (December to February), when temperatures can be chilly and outdoor activities are limited. However, Nashville still offers a range of indoor attractions and events, including live music performances, art exhibits, and museums. The holiday season can also be a popular time to visit Nashville, with festive events and decorations throughout the city.

How far is Nashville, Tennessee from the nearest airport?

Nashville, Tennessee is served by the Nashville International Airport (BNA), which is located approximately 8 miles (13 kilometers) east of downtown Nashville. The airport is easily accessible by car, taxi, shuttle, or public transportation.

‍Are there any major events in Nashville, Tennessee?

• Nashville Film Festival: This is a week-long event held in October that celebrates the art of filmmaking. The festival showcases over 300 films from around the world and includes industry panels, workshops, and networking events.
• CMA Music Festival: This is a four-day event held in June that features live music performances by country music artists. The festival draws over 80,000 fans to downtown Nashville each year.
• Tennessee State Fair: This is a 10-day event held in September that celebrates the state's agriculture, arts, and crafts. The fair includes carnival rides, live music, food vendors, and a variety of exhibits.
• Nashville Cherry Blossom Festival: This is a one-day event held in April that celebrates Japanese culture and the arrival of spring. The festival features music and dance performances, food vendors, and a cherry blossom tree planting ceremony.
• Music City Food + Wine Festival: This is a two-day event held in September that celebrates Nashville's food and beverage scene. The festival includes tastings, cooking demonstrations, and workshops led by local chefs and mixologists.
• Fourth of July Celebration: This is a one-day event held on Independence Day that features live music, food vendors, and a fireworks display over downtown Nashville.
• Nashville Oktoberfest: This is a four-day event held in October that celebrates German culture and features live music, food vendors, and a variety of craft beers.
• Nashville Christmas Parade: This is a one-day event held in December that features floats, marching bands, and balloons as it makes its way through downtown Nashville.

What Airbnb amenities do guests expect and pay a premium for in Nashville, Tennessee?

• Location: Guests typically look for properties located in popular neighborhoods like downtown Nashville or East Nashville, which are close to popular attractions, restaurants, and nightlife.
• Outdoor Space: Properties with outdoor spaces like patios, decks, or balconies are in high demand, especially during warmer months.
• Free Parking: Nashville is known for its car culture, so having free parking available for guests is a big plus.
• High-speed Wi-Fi: Many travelers require fast and reliable Wi-Fi for work or entertainment, so offering high-speed internet is a must.
• Smart Home Features: Airbnb guests appreciate properties with smart home features like keyless entry, smart thermostats, and voice-activated assistants.
• Full Kitchen: Guests who prefer to cook their own meals appreciate having a full kitchen with modern appliances.
• Entertainment: Having a TV with streaming services like Netflix or Hulu, as well as board games or books, can enhance a guest's experience and make them feel at home.
• Cleanliness and Safety: Guests expect a high level of cleanliness and safety, with properties that are thoroughly cleaned and disinfected between stays, and equipped with smoke detectors, fire extinguishers, and first aid kits.

From Listing to Airbnb

1. Place an offer on this property: If you have a local real estate agent forward them this email and let them know you are interested in the property. If you want help finding the best representation, simply reply to this email and request an agent. Awning will get in touch with it’s network of agents. It’s best to be qualified for a mortgage, here is a list of lenders that work with Airbnb investors.
2. Close on the property: Closing on this property should be simple. An agent will help you review the contract and confirm that everything in the inspection report makes this a good deal.
3. Renovate and furnish the property: This property is easy to renovate and furnish. Then you’ll need some items, which you can find in this Airbnb Host Checklist.
4. Gather necessary documents and permission: You’ll want to consult Tennessee Short Term Rental Laws. In most cases, you won’t require an attorney as the paperwork process is straightforward.
5. List the property on Airbnb: To list your property on Airbnb you’ll need a description, title and professional photography.
6. Manage the Airbnb: If you choose to self-manage the Airbnb you should not have much trouble finding reliable cleaners in the area.
7. Awning Management: If you choose to use Awning Property Management we can take care of gathering documents and list the property for you. You can learn more about Awning Property Management or reach our team by responding to this email.