05/24/2022
Recent 4 SFR Purchases in Franklin, TN!
2000, 2002, 2006 Manchester
Loan Amounts: $387,000
4.325% Fixed Rate
30-year term
10-year Interest only
1906 Hutton B, Franklin, TN
Loan Amount: $491,000
4.325% Fixed Rate
30-year term
10-year interest only
Like many Californians we have effectively “moved” to Tennessee. As of 10 days or so ago we have completed the purchase of our four homes. We completed the purchase of the Hutton property (2,149 square feet consisting of 3 Beds + 2.5 Baths) back in early April. The three homes on Manchester closed in late April and early May. The three Manchester homes are (1,752 square consisting of 3 beds + 3 baths with unobstructed views of downtown of Downtown Nashville.
Our initial investigations of the Nashville rental market had us underwriting the Hutton home with rents ranging from $3,000 to $3,600 in rent for that sub market of Woodycrest. The home is currently rented to a Tennessee Titan at $4,100 per month and is less than a mile from the Titans training facility. The Manchester homes were forecasted with a rental range of $2,500 to $2,800 and we’ve been able to achieve $3,200 on two of them and have an application pending at the same rate of $3,200 on the final home.
This is certainly encouraging news for short term cash flow and long term success of this investment. For many of you who have been following the interest rate environment the months of April and May were not friendly to residential barrowing. Similar to our timing of the Poplar closing (April 2020) we had to jump over hurdles and fight for our rates in a very volatile environment. The interest rates we have for the properties are neither what we had forecasted or what were offered in the worst moments of our negotiations. They are somewhere in the middle and something we will watch for the right opportunity to refinance for the benefit of our investment group.
Lastly, while for many of us our money is out of state, we are lucky to have Michael’s boots on the ground in Nashville. He’ll have his eyes on the properties on a regular basis and has already established a good partnership with our management company (Volunteer Properties). Together they obtained better than projected rents and were hopeful that we’ll have continued great news to share regarding this investment.
