Few cities have embraced the two-homes-on-one-lot build like Nashville. Tall, narrow infill pairs have reshaped neighborhoods from East Nashville to The Nations, and the surrounding counties keep adding subdivisions. Builders who win here pair tight budgets with a lender that funds on schedule.
In short: LendingStreet is our top pick for ground-up construction in Nashville. We finance investor builds of 1 to 8 units, including two-on-a-lot infill pairs, spec homes, build-to-rent homes and small 5-8 unit buildings. Loans are sized on loan-to-cost with terms set per project, draws are released after inspections, LLC borrowers are standard and finished rentals can refinance into a 30-year DSCR loan. Get a quote with the form below or call (877) 298-1001.
Nashville builders usually want two things from a lender: draws that arrive when the framing crew is ready, and options at the finish, whether that means selling both homes, selling one or holding them as rentals. LendingStreet is built for investors and covers all three outcomes with construction and DSCR loans in one place.
We size every loan on loan-to-cost and set terms around the plans, permits, budget and builder experience on the project. Inspections trigger each draw, so money follows the work.
Ready to price a lot? Use the form below or call (877) 298-1001.
Infill pairs and single spec homes are common in East Nashville, Inglewood, Cleveland Park, The Nations, Sylvan Park, Wedgewood-Houston, Chestnut Hill, North Nashville, Bordeaux and Madison, where older small homes sit on lots zoned for two units. Antioch and southeast Davidson County offer more room at lower land cost.
In the surrounding counties, Murfreesboro, Smyrna, La Vergne, Mt. Juliet, Lebanon, Gallatin, Hendersonville, Spring Hill, Columbia and Clarksville see subdivision spec and build-to-rent single-family work. Each has its own permit office, impact fees and utility district.
In Nashville and Davidson County, building permits come from Metro Codes, with zoning, stormwater and water and sewer reviews alongside. Many two-family zoned lots are built as two detached homes and sold separately under a horizontal property regime, but the details depend on zoning and lot size, so confirm what your parcel allows.
New construction in many areas must build sidewalks or pay an in-lieu fee, and stormwater rules can require on-site management on infill lots. These costs belong in the soft-cost budget.
Metro limits non-owner-occupied short-term rental permits in most residential zones. Investors planning to hold should model long-term rents.
Below, LendingStreet next to the kinds of lenders Middle Tennessee builders usually call. Other lenders' terms vary, so read their columns as general tendencies.
| Question for the lender | LendingStreet | Typical bank | Typical private or hard money lender |
|---|---|---|---|
| Does it fit investor builds? | Yes, spec, build-to-rent and small 5-8 unit buildings | Sometimes, often for long-time clients | Sometimes, mostly short-term |
| How is the loan sized? | On loan-to-cost; terms set for each project | Often lower leverage with extra underwriting | Varies |
| Two homes on one lot, sold separately | Yes, structured for sale, hold or a mix | Varies | Varies |
| What do they want to see? | Plans, permits, a line-item budget and builder experience | Often income, tax returns and deposits | Varies |
| Can an LLC borrow? | Yes, LLC borrowers are standard | Varies | Usually |
| How are draws handled? | After inspections, on a schedule set up front | Varies | Varies |
| What happens at completion? | Refinance into a DSCR rental loan or sell | Often a new application elsewhere | Pay off; usually no long-term loan |
| Can they follow you to other markets? | Yes, all 50 states and DC | Usually not | Usually not |
This example is illustrative and not a quote.
A builder buys an infill lot zoned for two units for $340,000 and plans two detached homes. Hard costs for both are $660,000 and soft costs (design, engineering, permits, sidewalk and stormwater work) are $95,000, for a total of $1,095,000. In this illustration the loan is sized at 80% of cost, or $876,000, and the builder brings $219,000. Hard costs fund in about 5 draws of roughly $132,000 after inspections.
The two homes sell for a combined $1,350,000. Selling costs of about 6% are $81,000. After paying off the $876,000 loan, $393,000 remains, and after returning the builder's $219,000, the gross margin is about $174,000, or 12.9% of sale proceeds, before interest, taxes and carrying costs, which depend on your terms and how long the build and sale take.
Tennessee does not tax wage income, and property taxes in Davidson County are moderate compared with many metros. New construction is assessed once complete, so confirm the expected bill with the Metro Assessor before you plan a hold.
On a sale, Tennessee charges a recordation tax on the transfer, and new mortgages carry an indebtedness tax, which affects both a sale exit and a refinance. Severe storms and tornadoes are a real risk in Middle Tennessee, so price builders risk and wind coverage early.
Ask each lender the same questions before you commit:
LendingStreet's answers: we size on loan-to-cost with terms set per project, and leverage can be lower on large balances or 5-8 units (varies by program). Draws are released after inspections on a schedule agreed at closing. We look for builder experience or an experienced general contractor, LLC borrowers are standard, and completed homes can refinance into a DSCR loan with a 1.0x standard minimum, rate-and-term up to 80% LTV on some programs and seasoning that varies by program.
We move fastest on projects with plans and permits in hand or in late review, a line-item budget with contingency, recent sales of comparable new homes and a builder with finished projects. Projects without plans or permits, or a borrower with no build track record and no experienced general contractor, usually do not qualify.
Buildings of 9 or more units go to our commercial team. For 1-8 unit builds in Nashville and Middle Tennessee, get a quote with the form below or call (877) 298-1001.
Our top pick is LendingStreet. We are built for investors, finance two-on-a-lot, spec and build-to-rent projects of 1-8 units on loan-to-cost, release draws after inspections and offer a DSCR refinance if you decide to hold.
Yes. We lend in Nashville, Davidson County and the surrounding Middle Tennessee counties, across Tennessee and in all 50 states and DC, on non-owner-occupied investment property.
Yes, when zoning and permits allow it. We can structure the loan for selling both homes, holding both or selling one and keeping the other.
Metro Nashville limits non-owner-occupied short-term rental permits in most residential zones, so check the zoning first. Long-term rents are the safer basis for a DSCR refinance.
The build budget is split into stages. After each stage, an inspection confirms the work and the draw is released. Our draw schedule calculator can help you set stages.
You can refinance into a DSCR loan qualified on rent, with no W-2s or tax returns. The standard minimum DSCR is 1.0x and the minimum credit score is 620.
Builder experience is important. Without a track record, an experienced general contractor on the project is usually required.
Send your lot, plans and budget through the form below, or call (877) 298-1001.
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