If you are searching for strong condo rental market, you’re going to need to make sure your cap rates and cash flow work out well. Many of the prices in Germantown (for condos…or as my UK friend calls “apartments”), do not allow for a proper cash flow. So, if you’re looking for rental investment, I would not be as strong on Germantown. Most of the people who are “landlords” there (I personally know) did not purchase/build there with the intent of being landlords. They are now trying to float the note until the stock decreases in that area. I personally own numerous investment/rental properties all over Nashville and am very conservative and picky about my investments. DO NOT HEAR ME INCORRECTLY….I adore Germantown. It’s one of my favorite parts of town. Renters DO love it. It’s gorgeous, convenient, funky and fun. You are an investor…I just can’t say it’s in your best interest.
If you are looking to purchase, not worry about cash flow, let it appreciate, then sell for a profit, again…I can’t say that Germantown is the best option right now. There’s a huge proliferation of stock there right now due to a LOT of developers buying, holding and now developing. We’re not seeing quick appreciation on a lot of these projects recently. Now, since the Jefferson Street redevelopment plan implementation in the mid 2000s, the areas bordering the redevelopment (which include Germantown, Hope Gardens, Buena Vista Heights, Market District) have seen appreciation of over 300%. HOWEVER, the market hasn’t caught up with the appreciations in that area.
If I were placing my money smartly in rental/investment property right now (which I’m on a break right now), I’d buy Village South in the Melrose neighborhood (starting in the low $100s and show solid potential for growth with proximics to Vanderbilt University and Belmont), Bixler Farms in Madison (starting in the low $100s and BRAND new…I drove through last night and was amazed with the class, quality and beauty), Cleveland Park and/or McFerrin Park in East Nashville (any home or townhome…with the Skyline Redevelopment just announced at already 115% appreciation over the past few years…it’s only up) and the list goes on and on.