Investors Report

Investment Property Profile: 2540 Grays Bend Rd, Centerville, TN 37033

Rural Charm Meets Investment Potential

Nestled among the rolling hills of Hickman County, just 50 minutes from downtown Nashville, 2540 Grays Bend Road represents a compelling opportunity for investors seeking both immediate rental income and long-term appreciation. This well-maintained 1,600-square-foot home sits on a generous 5-acre parcel, offering the privacy and space that today's renters increasingly desire in our post-pandemic world.

Priced at $289,000—slightly below its estimated market value of $305,000—this property hits the sweet spot for investors looking to enter the growing Nashville metro market without the premium prices found closer to the city center. At $181 per square foot, the value proposition becomes even more attractive when considering the substantial acreage included.

A Solid Foundation for Your Investment Portfolio

Built in 1992, this single-family residence has been thoughtfully maintained and strategically updated to minimize future capital expenditures—a key consideration for any investment property. Recent improvements include:

A new roof installed in 2022, providing peace of mind for the next 20+ years
Complete HVAC system replacement in 2021, enhancing energy efficiency
Modern kitchen updates with new appliances (2020)
Refreshed bathrooms with contemporary fixtures (2020)
Fresh interior paint throughout (2023)

The 3-bedroom, 2-bathroom layout appeals to a wide range of potential tenants, from young families to remote workers seeking extra space for home offices. The attached two-car garage and additional storage shed provide practical amenities that command premium rent in rural settings.

Location: The Untapped Potential of Hickman County

While Centerville may not be a household name for out-of-state investors, locals recognize Hickman County as an emerging market benefiting from Nashville's continued expansion. The numbers tell a compelling story:

4.8% population growth in Hickman County over the past five years
11.8% increase in median household income (now $54,200)
Home values appreciating at 5.7% annually over the past five years

The property sits just 7 miles from downtown Centerville, providing a balance of rural tranquility and convenient access to essential services. With Nashville only 50 minutes away, the rental pool includes commuters seeking affordability without sacrificing quality of life.

Market Metrics That Matter

For investors focused on data-driven decisions, 2540 Grays Bend Road presents an attractive set of metrics:

Average comparable rentals in the area command $1,700 monthly
Exceptionally low 3.1% vacancy rate indicates strong tenant demand
Price-to-rent ratio of 14.2 suggests a balanced market for investors
Potential cap rate between 6.3% and 6.8%—significantly higher than many urban investments

The property's positioning in a market with 42 average days-on-market for listings indicates solid liquidity should an exit strategy become necessary.

Financial Performance: Breaking Down the Numbers

Let's examine how this property performs financially, using conservative estimates:

Income Potential:

Monthly Rent: $1,700
Annual Rental Income: $20,400
Vacancy Reserve (3.1%): $632
Effective Gross Income: $19,768

Annual Expenses:

Property Taxes: $1,450 (remarkably low compared to urban areas)
Insurance: $1,200
Maintenance Reserve (5%): $1,020
Property Management (8%): $1,632
Total Annual Operating Expenses: $5,302

This creates a Net Operating Income of $14,466 annually, or $1,205 monthly. When factoring in a typical mortgage payment (30-year fixed at 6.5% with 20% down), the monthly cash flow sits at -$259. However, increasing the down payment to 25% achieves positive cash flow of $30 monthly.

While the immediate cash flow may appear modest, the long-term perspective reveals the property's true potential:

5-Year Projected Equity Build: $26,500
5-Year Projected Appreciation: $90,000 (at historical 5.7% appreciation)
5-Year Total Return: $118,300
5-Year ROI: 142% (with 25% down payment)

Area Development: Riding the Nashville Expansion Wave

Centerville and Hickman County are strategically positioned to benefit from multiple development initiatives:

A county-wide broadband expansion project is currently underway, enhancing connectivity for remote workers—a growing tenant demographic. Highway 100 improvements planned for 2025-2026 will further reduce commute times to Nashville, likely driving additional population growth.

The local school district has shown steady improvement, achieving a 7/10 rating with new STEM programs at the high school level—an important consideration for family renters. Crime rates sit 28% below the national average, enhancing the area's appeal for safety-conscious tenants.

Most importantly, Nashville's continued economic expansion and rising housing costs are pushing more residents to consider outlying areas like Hickman County, creating sustained demand for quality rental properties.

Strategic Exit Options

This property offers multiple exit strategies to maximize returns:

Value-Add Potential: The 5-acre lot allows for possible subdivision (pending zoning approval) or addition of an Accessory Dwelling Unit for increased rental income.
Long-Term Hold: Building equity through mortgage pay-down while benefiting from Nashville's expanding footprint and rising property values.
1031 Exchange: Using accumulated equity to leverage into a larger multi-family asset after 5-7 years of appreciation.
Seller Financing: For maximum return, offering seller financing to a future buyer could create a passive income stream with minimal management requirements.

Risk Assessment and Mitigation

Every investment carries risk, and this property is no exception. Key considerations include:

The rural location may limit the tenant pool compared to urban properties
The property relies on septic system and well rather than municipal services
Initial cash flow is tight without a larger down payment

However, these challenges are mitigated by the property's updated condition, the growing Nashville metro area, and the trend of remote work expanding viable commuting distances. The property's low operating costs ($5,302 annually) provide a substantial buffer against unexpected expenses.

The Bottom Line: Why This Property Deserves Consideration

In today's competitive real estate market, finding properties that offer both immediate income potential and long-term appreciation becomes increasingly challenging. 2540 Grays Bend Road represents that rare combination—a turnkey property in excellent condition, positioned in a growing market, with numbers that work for patient investors.

Whether you're building your first investment portfolio or diversifying existing holdings, this Centerville property offers a compelling blend of rural charm and financial performance. The low entry price, combined with Nashville's continued growth trajectory, creates a runway for appreciation that many higher-priced markets simply cannot match.

For investors willing to look beyond city limits and embrace the emerging opportunities in transitional markets, 2540 Grays Bend Road represents not just a property, but a strategic position in Nashville's expanding economic footprint.