Nashville real estate investors will be pleased to hear that Tennessee’s capital is home to a booming real estate market. In fact, for the third straight year, Nashville is on the list of the top 10 real estate markets of 2018 according to Forbes! Nashville’s population is growing more than double the US average rate. As more people move to the city, real estate investors are likely to see greater opportunities when it comes to investing in a Nashville property – especially in the East Nashville real estate market. Below we list the overall real estate market statistics of Nashville real estate, as computed by Mashvisor’s investment property calculator:
- Median Property Price: $436,693
- Traditional Nashville Rental Income: $1,889
- Airbnb Nashville Rental Income: $2,192
- Traditional Nashville Cash on Cash Return: 2.3%
- Airbnb Nashville Cash on Cash Return: 3.26%
- Traditional Nashville Cap Rate: 2.3%
- Airbnb Nashville Cap Rate: 3.26%
Related: Top 10 Real Estate Markets for Buying Rental Property in 2018
Furthermore, Mashvisor’s data shows that the East Nashville real estate market is one of the best places to buy a Nashville investment property. Thus, without further ado, let’s explore what makes East Nashville a great real estate investing market.
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East Nashville Real Estate Market – Overview
According to Mashvisor’s data, the best neighborhood in Nashville real estate is the East Nashville Block Club. So, if you’re looking for a Nashville investment property, we suggest finding an East Nashville Block Club investment property. Here are reasons why investing in the East Nashville real estate market (specifically in East Nashville Block Club) is a smart investment decision:
#1 Affordability
The East Nashville real estate market is full of buyers beaming with confidence. An East Nashville Block Club real estate investor can find affordable investment properties in this housing market, especially single-family homes. The median home price of an East Nashville Block Club investment property is $286,250 with an occupancy rate of about 63%.
#2 High Employment Rate
The low unemployment rate is another reason for the East Nashville real estate market’s attractiveness – meaning a strong local economy. In the past year, Nashville’s overall employment rate has seen growing thanks to a series of construction projects. Moreover, major companies have headquarters there, creating jobs and bringing more residents, which in turn drives the demand for Nashville real estate investing.
#3 Low Cost of Living
East Nashville Block Club is the best neighborhood in the East Nashville real estate market due to the neighborhood’s surprising low living costs. Nashville is the second largest city in Tennessee after Memphis; however, an East Nashville Block Club investment property is still less expensive than an investment property in other neighborhoods across the state! This works out great for both the East Nashville real estate market investment property investors and tenants.
Investing in the East Nashville Real Estate Market – Traditional Rentals
As mentioned earlier, one reason why East Nashville Block Club is the best neighborhood in Nashville is due to the affordability of real estate investment properties in the neighborhood, especially single-family homes. In addition to this, many East Nashville real estate market residents prefer renting over buying a real estate property. As a result, an East Nashville Block Club real estate investor has a great opportunity to find and buy single-family homes and rent them out for a good return on investment. According to Mashvisor’s investment property calculator, investing in a Nashville property (traditional rentals) generates the following return on investment:
- Traditional Rental Income: $2,100
- Traditional Cash on Cash Return: 4.71%
- Traditional Cap Rate: 4.71%
Related: The Expert’s Guide to Traditional Rentals in the US Housing Market
To find the best traditional investment properties in East Nashville real estate market, click here.
Investing in the East Nashville Real Estate Market – Airbnb Rentals
Nashville has many legendary country music venues as well as historic and cultural sights. These attract a large number of visitors from other states as well as from around the globe. Moreover, the city hosts many annual business meetings. The growing number of short-term visitors makes Nashville real estate one of the most profitable markets for Airbnb rentals!
Keep in mind that currently there’s a continuous change in Airbnb rentals legal requirements and regulations in Nashville. Therefore, it is advisable to research the laws of the East Nashville real estate market regarding Airbnb rentals before investing in a Nashville property. Here’s the average return on investment on East Nashville Airbnb rentals as calculated by Mashvisor’s investment property calculator:
- Airbnb Nashville Rental Income: $3,612
- Airbnb Cash on Cash Return: 10.02%
- Airbnb Cap Rate: 10.02%
Thus, even though there are some legal issues regarding Airbnb rentals in Nashville, the city is still considered one of the best real estate markets to invest in short-term rentals in 2018.
Click here to find the best Airbnb investment properties in the East Nashville real estate market.
Related: Four Things to Consider Before Purchasing an Airbnb Investment Property
East Nashville Real Estate Market – The Bottom Line
Nashville is still one of the top 10 real estate investment markets in the United States for the third consecutive year! East Nashville is booming with real estate investing opportunities, especially East Nashville Block Club, which is the best neighborhood in Nashville according to our data. So, whether you’re a Nashville real estate investor, or an out-of-state real estate investor looking to grow your investment portfolio through buying a Nashville investment property, East Nashville real estate market (East Nashville Block Club) is the best place to invest in 2018.
Mashvisor’s investment property calculator helps real estate investors in acquiring quick and accurate results (regarding cash flow, cap rate, cash on cash return, rental income, and much more) for both Airbnb rentals and traditional rentals in any state, city, and neighborhood across the United States! This ultimately enables real estate investors to make faster and smarter real estate investment decisions for a successful real estate investing career.
Click here to start looking for and analyzing the best investment properties in your city and neighborhood of choice. Moreover, to start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount afterward, click here.