STR-Eligible Nashville Investment Property: 803 21st Ave N - $579,900 + STR LLC Buyer Checklist

Looking for a Nashville short-term rental investment with an STR permit structure already in place? 803 21st Ave N is an exciting opportunity for investors who want a property with income potential, a strong location, and a backyard that can be transformed into a guest-friendly amenity space.

This property is currently held in an LLC, creating the potential for an LLC transfer structure. For the right buyer, that may allow the existing STR permit and business structure to remain in place, making this a very attractive Nashville Airbnb investment opportunity.

 

Have questions about this property, Nashville STR rules, or how LLC transfers work?

Nashville STR LLC Transfer Buyer Checklist

What to Know Before Buying an STR-Eligible Property in Nashville

Buying a short-term rental eligible property in Nashville can be an incredible investment opportunity, especially when the property already has an STR permit in place.

Some properties, like 803 21st Ave N, are held inside an LLC. In certain cases, a buyer may be able to acquire the LLC through an LLC transfer or MIPA-style agreement, allowing the STR permit and existing business structure to remain in place.

That can sound complicated, but with the right team guiding you, it is much more straightforward than most buyers expect.

Use this checklist to understand the key items to review before purchasing an STR-eligible property in Nashville.

1. Confirm the STR Permit Structure

Before moving forward, confirm whether the property is:

  • Commercially zoned and eligible for a new STR permit
  • Currently operating with an active STR permit
  • Held inside an LLC with the potential for an LLC transfer
  • Eligible only under specific grandfathered permit rules

This distinction matters because Nashville STR rules can vary depending on zoning, ownership structure, and permit history.

For an LLC transfer, the buyer is typically acquiring the entity that owns the property and holds the STR permit. This is different from buying a property personally and applying for a new permit after closing.

2. Review the MIPA or LLC Transfer Process

If the property is being sold through an LLC transfer, make sure you understand the agreement structure.

Items to review include:

  • Who owns the LLC
  • Whether the LLC currently holds the STR permit
  • Existing bookings, contracts, or vendor relationships
  • Any debts, liabilities, or obligations inside the LLC
  • Whether the operating agreement needs to be updated
  • How the transfer will be handled legally and financially

This is where having the right real estate agent, attorney, lender, and CPA matters. The process is not as intimidating as it may sound, but it should be reviewed carefully.

3. Confirm Financing Options

Not every lender handles STR properties or LLC transfers the same way.

Common financing options may include:

  • DSCR loans
  • Commercial loans
  • Investor loans
  • Portfolio lending
  • Cash purchase
  • Creative financing depending on the deal structure

For STR investments, many buyers evaluate the property based on income potential rather than only personal income.

Before writing an offer, speak with a lender who understands Nashville STR investments and LLC-transfer transactions.

4. Review the Property’s Revenue Potential

When reviewing an STR investment, look beyond the current condition of the property and study the income potential.

Key numbers to review:

  • Average daily rate, also called ADR
  • Occupancy rate
  • Gross annual revenue
  • Operating expenses
  • Management fees
  • Cleaning fees
  • Utilities
  • Insurance
  • Property taxes
  • Maintenance reserves
  • Permit renewal costs
  • Net operating income
  • Cash flow after debt service

For 803 21st Ave N, the underwriting discussed in the video included a conservative revenue approach, a DSCR loan assumption, and an estimated amenity improvement budget.

5. Study the Backyard and Amenity Upside

Outdoor amenities can make a major difference for short-term rental performance in Nashville.

Potential guest-friendly upgrades may include:

  • Hot tub
  • Deck or patio
  • Cowboy pool
  • Barrel sauna
  • Cold plunge
  • Fire pit area
  • Outdoor dining space
  • Mural wall
  • Pet-friendly turf or rinse station
  • Games and gathering areas

A backyard with strong amenity potential can help improve guest experience, photography, reviews, nightly rates, and overall booking appeal.

For a property like 803 21st Ave N, the backyard is one of the biggest value-add opportunities.

6. Understand Pet-Friendly STR Potential

Pet-friendly short-term rentals can be attractive to guests and may create additional revenue through pet fees.

Before advertising a property as pet-friendly, consider:

  • Durable flooring
  • Easy-clean furniture
  • Outdoor pet area
  • Pet rinse station
  • Clear house rules
  • Additional cleaning protocols
  • Pet fee structure
  • Insurance considerations

A well-designed pet-friendly setup can help your listing stand out while protecting the property.

7. Budget for Cosmetic Updates

Many STR properties do not need a full renovation, but light cosmetic improvements can make a big difference.

Common updates include:

  • Interior paint
  • Drywall touch-ups
  • Updated furniture
  • Better lighting
  • Fresh bedding
  • Improved decor
  • Professional photography
  • Outdoor improvements
  • Guest experience upgrades

The goal is not just to make the home look good in person. The goal is to make it perform well online where guests are comparing your property against every other available Airbnb in Nashville.

8. Review Operating Expenses Carefully

A strong STR deal depends on accurate expense assumptions.

Review the following:

  • Mortgage payment
  • Property taxes
  • Insurance
  • Utilities
  • Internet
  • Lawn care
  • Pest control
  • Cleaning
  • Maintenance
  • STR management
  • Platform fees
  • Permit renewal
  • Supplies
  • Capital reserves

Amenities like hot tubs, saunas, and pools can increase revenue potential, but they may also increase maintenance and utility costs. Make sure both sides are included in your underwriting.

9. Compare the Property to Residential Comps

Even if you are buying the property as a short-term rental investment, it is still important to understand the underlying residential value.

Ask:

  • What are similar homes selling for nearby?
  • How does the price compare on a price-per-square-foot basis?
  • Would the property still make sense if STR rules changed?
  • Is the location improving?
  • Is there long-term appreciation potential?
  • Could the property work as a long-term rental or resale later?

A great STR investment should ideally have both income potential and strong underlying real estate value.

10. Build the Right Professional Team

Buying an STR-eligible property in Nashville is easier when you have the right people involved.

Your team may include:

  • Real estate agent experienced with Nashville STR properties
  • STR-focused lender
  • Real estate attorney
  • CPA
  • Insurance agent
  • Property manager
  • Contractor
  • Designer or furnishing team
  • Bookkeeper

The right team can help you avoid mistakes, understand the numbers, and move through the process with confidence.

Questions to Ask Before Buying

Before purchasing an STR-eligible property, ask:

  • Is the STR permit currently active?
  • Is the permit tied to an LLC?
  • Can the LLC be transferred?
  • Are there existing bookings?
  • What zoning applies to the property?
  • What are the current and projected revenues?
  • What expenses were included in the underwriting?
  • What improvements are recommended?
  • What financing options are available?
  • Who should review the legal documents?
  • What is the long-term exit strategy?

Final Thoughts

Nashville short-term rental investing can be a powerful way to build cash flow, long-term equity, and a scalable real estate portfolio.

Properties with existing STR eligibility, strong layouts, and value-add amenity potential can be especially attractive when analyzed correctly.

LLC transfers and STR permitting rules may sound complex, but they are very manageable when you have the right guidance.

If you are considering buying an STR-eligible property in Nashville, or if you have questions about how LLC transfers work, reach out to David and Pete with The Grow Team Nashville.

Contact The Grow Team Nashville

David: david@realgrowteam.com
Pete: pete@realgrowteam.com
Call/Text: 615-979-1644

 

👉 DM me today to learn more or let’s talk about your next move!