Brentwood, Tennessee's population growth culminated from people moving to the town from other parts of the country. This growth has made the city very attractive for residential real estate investment. Investors can approach real estate investment in this city using different strategies.
One factor to consider is whether the area is growing. Population growth indicates that there will be a future demand for housing. Furthermore, little population growth can lead to decreased property values and rents. Lower prices favor renters and prospective home buyers, but this might differ for investors.
Brentwood has a yearly population average of 2.09 percent over the past decade, outpacing state (.74 percent) and national (.69 percent) averages. The city has several residential neighborhoods, including the 10 newly added ones. The average home price is $622,000, significantly higher than that for the state ($158,000) and national ($204,900) averages. Rental prices are just as high, with the gross median rent being $ 1,891 compared with the state ($841) and national ($1,023) gross median.
Even with the high rents and costs of property investment, investing in Brentwood offers advantages if the investor is wise in choosing properties. The first thing investors should consider is their investing strategy, such as buying and holding. A buy-and-hold strategy means the person intends to hold onto the property once purchased for an extended time to leverage income potential.
Investors can also purchase property to use for long-term rental income. This strategy, also referred to as "Buy, Rehab, Rent, Refinance, Repeat" or BRRRR, enables investors to continuously capitalize on this investment. However, the person must qualify for a cash-out mortgage refinance for the investment to pay off.
Investors can also purchase property as short-term rentals, where renters lodge for less than four weeks. However, the investor typically furnishes the property, which must be maintained and cleaned routinely. All the above strategies are hands-on and require an understanding of property management. The person must have connections to various contractors associated with the building trades.
Flix and flip is another investment strategy involving purchasing, renovating, and selling a property. However, for the investor to benefit from this strategy, the home's price must be significantly lower when initially purchased, so when upgraded and increased in value, the investor makes a lot on the sale.
Real estate investment can be done in alternative ways as well, such as wholesaling. A real estate wholesaler scouts properties for sale and signs a purchase agreement. When the property is under contract, this investor finds someone to purchase it for them for a fee.
Real estate investment trusts (REITs) and real estate investment funds allow investors to take a hands-off approach to investing their money. REITs can be made in a specific property or market, and real estate investment funds enable investors to invest in a mutual fund comprised of stocks.
Mortgage note investing is another hands-off approach to real estate investing. In this strategy, the investor purchases the debt from the lender, and when done well, the investor purchases the debt for substantially less than the loan amount. The borrower then makes payment on the mortgage to the investor, not their original lender.
Investors looking to invest in Brentwood can learn more about the real estate climate. Contacting top real estate investment groups or attending meetups and workshops are ways to get plugged into this community investment potential.
