1st Property Indecision: Washington State vs TN

Nashville, Tennessee
Starting Out
1yFollow

1st Property Indecision: Washington State vs TN

Hailey Peterson
Nashville, TN · Member since 2022 · 15 posts · 4 votes

Hello! I'm having a very hard time getting out of this analysis paralysis regarding where to invest for my first Long Term Rental investment property (Buy and Hold intention). I'm originally from WA state, but living in Nashville since 2016. My preference would be to invest in Washington (with the hopes that we will eventually end up back there), as appreciation and demand is great...but with that, there is of course a greater barrier to entry and would require significant more capital. I am also looking at Chattanooga/ Nashville, which would be much easier to get into sooner with the current inventory and prices, and has the benefit of being local. 

If you were me, would you take the easier route of initially purchasing in Chattanooga to get going, or invest more up front to get a highly appreciating property in Washington, knowing that the cash flow won't be as great (or maybe even breaking even for a few years) and I will need to save more significantly for additional properties thereafter.

I really appreciate any insight here, as I'm driving myself crazy! Thank you so much.

3Reply
99 views

Most Popular Reply

Laura Navaquin
Investor · Member since 2024 · 83 posts · 58 votes
1y

Hi Hailey, 

So, my husband and I invest in 6 states, and WA is NOT one of the 6, however I would recommend starting with TN. 

First off, we do invest in TN and TN doesn't have state income tax which is an advantage, but as well in landlord friendly. WA is NOT landlord friendly which could make investing challenging depending on your strategy. 

We as well invest in NY, which as well is NOT landlord friendly and it works for us, as all of our investment properties in NY are either STR'd or made into a business, such as an event venue. I personally wouldn't want a long-term rental in NY state in the event of needing an eviction, etc and the state not being landlord friendly.

Hope to be of help. Please feel free to reach out with any questions, etc. 

3Reply
See this reply in the discussion

37 Replies

Jump to latestLatest
  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
    1y
    Quote from @Hailey Peterson:

    Hello! I'm having a very hard time getting out of this analysis paralysis regarding where to invest for my first Long Term Rental investment property (Buy and Hold intention). I'm originally from WA state, but living in Nashville since 2016. My preference would be to invest in Washington (with the hopes that we will eventually end up back there), as appreciation and demand is great...but with that, there is of course a greater barrier to entry and would require significant more capital. I am also looking at Chattanooga/ Nashville, which would be much easier to get into sooner with the current inventory and prices, and has the benefit of being local. 

    If you were me, would you take the easier route of initially purchasing in Chattanooga to get going, or invest more up front to get a highly appreciating property in Washington, knowing that the cash flow won't be as great (or maybe even breaking even for a few years) and I will need to save more significantly for additional properties thereafter.

    I really appreciate any insight here, as I'm driving myself crazy! Thank you so much.

    Hi @Hailey Peterson, welcome to the BP Forum! You have a lot of company in your "analysis paralysis" affliction ;-) It happens to most REI when they first start out. I love that you are considering investing in an area you're from (or plan to return to), but given the great distance between your current location and WA state, I would highly suggest that you do your first (and potentially a few more) closer to where you live now. If/when you move back to WA state, it should be easier to manage those properties remotely...or you can always sell them at that point.

    If we focus on a market closer to you now, what type of properties are you seeking, SFR, 2-4 MF, or 5+ MF? What is your price range/down payment amount? Are you looking for turn-key properties or something along the lines of a "fixer upper"?

    [email protected]
    1Reply
    • Hailey Peterson
      OP
      Nashville, TN · Member since 2022 · 15 posts · 4 votes
      1y
      Quote from @Jaycee Greene:
      Quote from @Hailey Peterson:

      Hello! I'm having a very hard time getting out of this analysis paralysis regarding where to invest for my first Long Term Rental investment property (Buy and Hold intention). I'm originally from WA state, but living in Nashville since 2016. My preference would be to invest in Washington (with the hopes that we will eventually end up back there), as appreciation and demand is great...but with that, there is of course a greater barrier to entry and would require significant more capital. I am also looking at Chattanooga/ Nashville, which would be much easier to get into sooner with the current inventory and prices, and has the benefit of being local. 

      If you were me, would you take the easier route of initially purchasing in Chattanooga to get going, or invest more up front to get a highly appreciating property in Washington, knowing that the cash flow won't be as great (or maybe even breaking even for a few years) and I will need to save more significantly for additional properties thereafter.

      I really appreciate any insight here, as I'm driving myself crazy! Thank you so much.

      Hi @Hailey Peterson, welcome to the BP Forum! You have a lot of company in your "analysis paralysis" affliction ;-) It happens to most REI when they first start out. I love that you are considering investing in an area you're from (or plan to return to), but given the great distance between your current location and WA state, I would highly suggest that you do your first (and potentially a few more) closer to where you live now. If/when you move back to WA state, it should be easier to manage those properties remotely...or you can always sell them at that point.

      If we focus on a market closer to you now, what type of properties are you seeking, SFR, 2-4 MF, or 5+ MF? What is your price range/down payment amount? Are you looking for turn-key properties or something along the lines of a "fixer upper"?

      Thank you for your feedback, Jaycee!
      I am looking at SFR and small MF (down payment up to 100k). I would prefer turnkey, but open to cosmetic repairs to improve the value and buy at reduced price. 
      0Reply
    • Jaycee GreenePro Member
      Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
      1y
      Quote from @Hailey Peterson:
      Quote from @Jaycee Greene:
      Quote from @Hailey Peterson:

      Hello! I'm having a very hard time getting out of this analysis paralysis regarding where to invest for my first Long Term Rental investment property (Buy and Hold intention). I'm originally from WA state, but living in Nashville since 2016. My preference would be to invest in Washington (with the hopes that we will eventually end up back there), as appreciation and demand is great...but with that, there is of course a greater barrier to entry and would require significant more capital. I am also looking at Chattanooga/ Nashville, which would be much easier to get into sooner with the current inventory and prices, and has the benefit of being local. 

      If you were me, would you take the easier route of initially purchasing in Chattanooga to get going, or invest more up front to get a highly appreciating property in Washington, knowing that the cash flow won't be as great (or maybe even breaking even for a few years) and I will need to save more significantly for additional properties thereafter.

      I really appreciate any insight here, as I'm driving myself crazy! Thank you so much.

      Hi @Hailey Peterson, welcome to the BP Forum! You have a lot of company in your "analysis paralysis" affliction ;-) It happens to most REI when they first start out. I love that you are considering investing in an area you're from (or plan to return to), but given the great distance between your current location and WA state, I would highly suggest that you do your first (and potentially a few more) closer to where you live now. If/when you move back to WA state, it should be easier to manage those properties remotely...or you can always sell them at that point.

      If we focus on a market closer to you now, what type of properties are you seeking, SFR, 2-4 MF, or 5+ MF? What is your price range/down payment amount? Are you looking for turn-key properties or something along the lines of a "fixer upper"?

      Thank you for your feedback, Jaycee!
      I am looking at SFR and small MF (down payment up to 100k). I would prefer turnkey, but open to cosmetic repairs to improve the value and buy at reduced price. 

      @Hailey Peterson What about a duplex in Chatt like this, https://www.realtor.com/realestateandhomes-detail/1417-Stratton-Place-Dr_Chattanooga_TN_37421_M84927-54496?from=srp-list-card? Says it's fully leased so may be as close to turn-key as possible...

      [email protected]
      0Reply
  • William WhitleyBusiness Member
    Accountant · TN · Member since 2025 · 144 posts · 91 votes
    1y

    Good morning, Hailey,

    Since you are here in Tennessee, perhaps go ahead and purchase here first. While no one knows how long values are going to increase in Tennessee, it seems like more people are arriving in Tennessee than are leaving, and that increase creates housing demand, whether they are purchasing or leasing. As such, if you can find a property where the numbers make sense for you and your investment objectives, I would encourage you to move forward. Too much delay May cause you to pay more in the future than if you move forward now.

    I hope that helps you. 

    Accountable Balance Bookkeeping, LLC
    WebsiteView Page
    1Reply
    • Hailey Peterson
      OP
      Nashville, TN · Member since 2022 · 15 posts · 4 votes
      1y
      Quote from @William Whitley:

      Good morning, Hailey,

      Since you are here in Tennessee, perhaps go ahead and purchase here first. While no one knows how long values are going to increase in Tennessee, it seems like more people are arriving in Tennessee than are leaving, and that increase creates housing demand, whether they are purchasing or leasing. As such, if you can find a property where the numbers make sense for you and your investment objectives, I would encourage you to move forward. Too much delay May cause you to pay more in the future than if you move forward now.

      I hope that helps you. 


      I agree, I'm kicking myself for having waited as long as I already have!

      0Reply
  • Taz Zettergren
    Real Estate Agent · Memphis, TN · Member since 2019 · 365 posts · 264 votes
    1y

    @Hailey Peterson 

    Totally understand the analysis paralysis, your first investment is a big step, and both options have their pros and cons.

    Since you’re in Nashville, investing locally in Chattanooga or Nashville could be a great way to get started. Being nearby makes it much easier to oversee the property, build relationships with your property manager or contractors, and gain hands-on experience before expanding elsewhere. It also allows you to enter the market sooner without needing as much capital upfront.

    On the other hand, if your long-term goal is to build a portfolio in Washington and you’re comfortable with lower cash flow (or even breaking even) in exchange for appreciation, then making that initial investment there could align better with your future plans. The key is making sure you can comfortably hold the property without relying on immediate returns.

    A good middle ground might be to start with a rental in Tennessee to get experience under your belt, then use the equity and cash flow to help fund a Washington purchase down the road. Real estate is a long game, and getting started sooner rather than waiting for the perfect deal is often the best move.

    Whichever route you take, you’ll learn a ton along the way. Best of luck, and feel free to reach out if you ever want to talk through things further!

    2Reply
    • Hailey Peterson
      OP
      Nashville, TN · Member since 2022 · 15 posts · 4 votes
      1y
      Quote from @Taz Zettergren:

      @Hailey Peterson 

      Totally understand the analysis paralysis, your first investment is a big step, and both options have their pros and cons.

      Since you’re in Nashville, investing locally in Chattanooga or Nashville could be a great way to get started. Being nearby makes it much easier to oversee the property, build relationships with your property manager or contractors, and gain hands-on experience before expanding elsewhere. It also allows you to enter the market sooner without needing as much capital upfront.

      On the other hand, if your long-term goal is to build a portfolio in Washington and you’re comfortable with lower cash flow (or even breaking even) in exchange for appreciation, then making that initial investment there could align better with your future plans. The key is making sure you can comfortably hold the property without relying on immediate returns.

      A good middle ground might be to start with a rental in Tennessee to get experience under your belt, then use the equity and cash flow to help fund a Washington purchase down the road. Real estate is a long game, and getting started sooner rather than waiting for the perfect deal is often the best move.

      Whichever route you take, you’ll learn a ton along the way. Best of luck, and feel free to reach out if you ever want to talk through things further!

      Thank you so much for your detailed response! Appreciate it.
      0Reply
  • Malorie Moore
    Real Estate Agent · Memphis, TN · Member since 2021 · 88 posts · 50 votes
    1y

    Hi Hailey!

    If I were in your shoes, I’d start in Tennessee. The returns here are typically stronger than in Washington State, plus Tennessee has no state income tax—an added financial advantage!

    Once you’ve secured your first property here, you’ll always have the flexibility to expand into Washington or explore other markets that align with your goals.

    Good Luck on your investing journey!

    1Reply
  • Bernice RetzloffPro Member
    Memphis, TN · Member since 2024 · 234 posts · 100 votes
    1y

    Hey Hailey!

    I hear you on the analysis paralysis—it’s tough when both options have solid pros and cons. Investing in a market like Chattanooga or Nashville could make a lot of sense for your first rental. These areas have lower barriers to entry, making it easier to get started, and you’d be local, which gives you a huge advantage in management and market understanding. Plus, with Tennessee’s growing job market and strong rental demand, you can generate cash flow sooner, which can help you scale faster. Washington, while great for appreciation, might slow you down since you’d need more capital and could be breaking even (or negative) for a while. If your long-term plan is to end up back in WA, you could always build equity in TN first and then leverage that into a future purchase there. The key is just getting started—momentum is everything in real estate!

    I'd love to connect with you soon!

    901-664-1949
    1Reply
  • Andrew Street
    Member since 2019 · 1k+ posts · 292 votes
    1y

    Hey Hailey - I hear you—analysis paralysis is real! If your goal is long-term appreciation and you see yourself moving back to WA, it could be worth the higher upfront investment. But if getting started sooner and building momentum is important, Chattanooga/Nashville might make more sense. A solid local cash-flowing property could help you scale faster, making it easier to buy in WA later. Maybe start where it’s easier, then pivot when you have more capital? Either way, you’re making a smart move—just pick a lane and go for it!

    1Reply
    • Hailey Peterson
      OP
      Nashville, TN · Member since 2022 · 15 posts · 4 votes
      1y
      Quote from @Andrew Street:

      Hey Hailey - I hear you—analysis paralysis is real! If your goal is long-term appreciation and you see yourself moving back to WA, it could be worth the higher upfront investment. But if getting started sooner and building momentum is important, Chattanooga/Nashville might make more sense. A solid local cash-flowing property could help you scale faster, making it easier to buy in WA later. Maybe start where it’s easier, then pivot when you have more capital? Either way, you’re making a smart move—just pick a lane and go for it!


       Thank you! I'm aligned with your logic.

      0Reply
  • Ken M.
    Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    1y
    Quote from @Hailey Peterson:

    Hello! I'm having a very hard time getting out of this analysis paralysis regarding where to invest for my first Long Term Rental investment property (Buy and Hold intention). I'm originally from WA state, but living in Nashville since 2016. My preference would be to invest in Washington (with the hopes that we will eventually end up back there), as appreciation and demand is great...but with that, there is of course a greater barrier to entry and would require significant more capital. I am also looking at Chattanooga/ Nashville, which would be much easier to get into sooner with the current inventory and prices, and has the benefit of being local. 

    If you were me, would you take the easier route of initially purchasing in Chattanooga to get going, or invest more up front to get a highly appreciating property in Washington, knowing that the cash flow won't be as great (or maybe even breaking even for a few years) and I will need to save more significantly for additional properties thereafter.

    I really appreciate any insight here, as I'm driving myself crazy! Thank you so much.

    If your head is in Washington, it's a mistake to invest in Tennessee. Real estate is a long term play.
    1Reply
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    1y

    @Hailey Peterson if you understand you WILL make mistakes, which location gives you the best chance to catch them earlier, so you can recover faster?

    Guessing the local area.

    Once you've "cut your teeth" locally, how much better prepared will you be to start investing out of state?

    Logical Property Management4.9453 Reviews
    WebsiteView Page
    2Reply
  • Ken M.
    Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
    1y
    Quote from @Hailey Peterson:

    Hello! I'm having a very hard time getting out of this analysis paralysis regarding where to invest for my first Long Term Rental investment property (Buy and Hold intention). I'm originally from WA state, but living in Nashville since 2016. My preference would be to invest in Washington (with the hopes that we will eventually end up back there), as appreciation and demand is great...but with that, there is of course a greater barrier to entry and would require significant more capital. I am also looking at Chattanooga/ Nashville, which would be much easier to get into sooner with the current inventory and prices, and has the benefit of being local. 

    If you were me, would you take the easier route of initially purchasing in Chattanooga to get going, or invest more up front to get a highly appreciating property in Washington, knowing that the cash flow won't be as great (or maybe even breaking even for a few years) and I will need to save more significantly for additional properties thereafter.

    I really appreciate any insight here, as I'm driving myself crazy! Thank you so much.

    It will cost you at least $30,000 loss every time you sell. Realtor, repairs, concessions and so on. 
    0Reply
  • Henry T.
    Member since 2022 · 1k+ posts · 1k+ votes
    1y

    Don't be a landlord in Seattle. 

    1Reply
    • Hailey Peterson
      OP
      Nashville, TN · Member since 2022 · 15 posts · 4 votes
      1y
      Quote from @Henry T.:

      Don't be a landlord in Seattle. 


       Oof, I agree. Not looking at Seattle, that's for sure lol; I left Seattle in 2014 and now it's like a different country, let alone city. Makes me very sad.

      1Reply
    • Stephen Nelson
      Accountant , CPA, MBA in Finance, MS in Taxation · Redmond, WA · Member since 2025 · 172 posts · 135 votes
      1y
      Quote from @Hailey Peterson:
      Quote from @Henry T.:

      Don't be a landlord in Seattle. 


       Oof, I agree. Not looking at Seattle, that's for sure lol; I left Seattle in 2014 and now it's like a different country, let alone city. Makes me very sad.


      Me too. Washington state and King County used to be mildly pro-business, allowed space for entrepreneurs and small businesses, and relatively light on taxes. No longer.

      1Reply
  • Tenzapa Wakombe
    Real Estate Agent · Nashville, TN · Member since 2025 · 125 posts · 62 votes
    1y

    Hi @Hailey Peterson,

    I totally get the analysis paralysis—it’s a big decision! Since you’re already in Nashville, investing locally in Chattanooga or Nashville could be a smart move. Here’s why:

    ✅ Lower Barrier to Entry – You can start investing sooner with less capital.
    ✅ Stronger Cash Flow – Washington’s appreciation is great, but breaking even for years could slow your ability to scale.
    ✅ Hands-On Learning – Being local allows you to self-manage or build relationships with property managers and contractors, which is invaluable for a first-time investor.

    That said, if your long-term goal is to build wealth in Washington, you could consider starting with a cash-flowing property in TN to grow your capital, then reinvesting in WA when you're more financially positioned.

    Ultimately, the best decision is the one that gets you started. You can always pivot your strategy as you gain experience. Let me know if I can help with any insights on Middle Tennessee properties!

    2Reply
  • Stephen Nelson
    Accountant , CPA, MBA in Finance, MS in Taxation · Redmond, WA · Member since 2025 · 172 posts · 135 votes
    1y

    Just because several people above in thread mentioned TN doesn't tax income?

    Neither does Washington state.

    1Reply
    • Ken M.
      Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
      1y
      Quote from @Stephen Nelson:

      Just because several people above in thread mentioned TN doesn't tax income?

      Neither does Washington state.

      But they recently instituted a 7% capital gains tax. Pick your poison. 
      0Reply
    • Stephen Nelson
      Accountant , CPA, MBA in Finance, MS in Taxation · Redmond, WA · Member since 2025 · 172 posts · 135 votes
      1y
      Quote from @Ken M.:
      Quote from @Stephen Nelson:

      Just because several people above in thread mentioned TN doesn't tax income?

      Neither does Washington state.

      But they recently instituted a 7% capital gains tax. Pick your poison. 

      The Washington state 7% capital gains tax doesn't apply to real estate. (It also doesn't apply to a bunch of stuff as well.)

      Don't get me wrong. The capital gains tax is a stupid idea. But it targets the wealthy tech employees at Microsoft, Amazon, Meta, Google, etc.

      1Reply
    • Ken M.
      Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
      1y
      Quote from @Stephen Nelson:
      Quote from @Ken M.:
      Quote from @Stephen Nelson:

      Just because several people above in thread mentioned TN doesn't tax income?

      Neither does Washington state.

      But they recently instituted a 7% capital gains tax. Pick your poison. 

      The Washington state 7% capital gains tax doesn't apply to real estate. (It also doesn't apply to a bunch of stuff as well.)

      Don't get me wrong. The capital gains tax is a stupid idea. But it targets the wealthy tech employees at Microsoft, Amazon, Meta, Google, etc.

      Oh, I read that it applied to Capital Gains, my mistake. 
      0Reply
    • Hailey Peterson
      OP
      Nashville, TN · Member since 2022 · 15 posts · 4 votes
      1y
      Quote from @Stephen Nelson:
      Quote from @Ken M.:
      Quote from @Stephen Nelson:

      Just because several people above in thread mentioned TN doesn't tax income?

      Neither does Washington state.

      But they recently instituted a 7% capital gains tax. Pick your poison. 

      The Washington state 7% capital gains tax doesn't apply to real estate. (It also doesn't apply to a bunch of stuff as well.)

      Don't get me wrong. The capital gains tax is a stupid idea. But it targets the wealthy tech employees at Microsoft, Amazon, Meta, Google, etc.


       Thank you for weighing in on this! 

      0Reply
  • Laura Navaquin
    Investor · Member since 2024 · 83 posts · 58 votes
    1y

    Hi Hailey, 

    So, my husband and I invest in 6 states, and WA is NOT one of the 6, however I would recommend starting with TN. 

    First off, we do invest in TN and TN doesn't have state income tax which is an advantage, but as well in landlord friendly. WA is NOT landlord friendly which could make investing challenging depending on your strategy. 

    We as well invest in NY, which as well is NOT landlord friendly and it works for us, as all of our investment properties in NY are either STR'd or made into a business, such as an event venue. I personally wouldn't want a long-term rental in NY state in the event of needing an eviction, etc and the state not being landlord friendly.

    Hope to be of help. Please feel free to reach out with any questions, etc. 

    3Reply
  • Hailey Peterson
    OP
    Nashville, TN · Member since 2022 · 15 posts · 4 votes
    1y

    Thank you everyone for your feedback, I really appreciate it. Definitely a mixed bag of opinions! It's really helpful to talk things out and hear both sides. 

    0Reply
  • Youssef Riad
    Nashville · Member since 2025 · 5 posts · 1 vote
    1y

    Hey Hailey, I have talked to investors in both Washington and TN and I would advice you to chose Nashville. 

    0Reply
  • Sean SmithBusiness Member
    Real Estate Agent · Seattle, WA · Member since 2020 · 161 posts · 105 votes
    1y

    @Hailey Peterson I'll jump in on this topic as a pro-Washington counterpoint. I'm a big proponent of Snohomish county for investing -- it can provide cashflow, a lower entry point than King county, significant appreciation, and favorable zoning laws (multiple ADUs, lot splitting, etc.). Buy a solid front property, build up some equity and use it for more units on the same lot down the road. If you go this way, I'm happy to make an intro to a few great PMs as well.

    Fellow Real Estate Services537 Reviews
    WebsiteView Page
    0Reply
    • Ken M.
      Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
      1y
      Quote from @Sean Smith:

      @Hailey Peterson I'll jump in on this topic as a pro-Washington counterpoint. I'm a big proponent of Snohomish county for investing -- it can provide cashflow, a lower entry point than King county, significant appreciation, and favorable zoning laws (multiple ADUs, lot splitting, etc.). Buy a solid front property, build up some equity and use it for more units on the same lot down the road. If you go this way, I'm happy to make an intro to a few great PMs as well.

      .
      Is there a transfer fee when you sell property in Washington. How much on a $500,000 sale?
      0Reply
    • Sean SmithBusiness Member
      Real Estate Agent · Seattle, WA · Member since 2020 · 161 posts · 105 votes
      1y
      Quote from @Ken M.:
      Is there a transfer fee when you sell property in Washington. How much on a $500,000 sale?

      @Ken M. Washington State does have a real estate excise tax (REET) at 1.1% on a property sold for $500k. King, Snohomish, and Pierce Counties all have an additional local 0.5% transfer tax. Total is 1.6% on a $500k sale, or $8k.

      Fellow Real Estate Services537 Reviews
      WebsiteView Page
      1Reply
    • Ken M.
      Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
      1y
      Quote from @Sean Smith:
      Quote from @Ken M.:
      Is there a transfer fee when you sell property in Washington. How much on a $500,000 sale?

      @Ken M. Washington State does have a real estate excise tax (REET) at 1.1% on a property sold for $500k. King, Snohomish, and Pierce Counties all have an additional local 0.5% transfer tax. Total is 1.6% on a $500k sale, or $8k.

      .
      When I was buying and selling in Seattle Excise was 1.78% which was about $8,900 and 6% realtor fees $30,000 and concessions and costs and fees, it was pretty near $50,000 just to sell.  Nowadays, isn't there a capital gains on top of that of like 7%? 

      Ah, don't worry about that, you have Mt Rainier to look at and lots of interesting people living on the streets.  ;-)


      0Reply
  • Sean SmithBusiness Member
    Real Estate Agent · Seattle, WA · Member since 2020 · 161 posts · 105 votes
    1y

    @Ken M. 7% tax on capital gains doesn't apply to real estate, but yes I understand the sentiment.

    Fellow Real Estate Services537 Reviews
    WebsiteView Page
    1Reply
    • Ken M.
      Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
      1y
      Quote from @Sean Smith:

      @Ken M. 7% tax on capital gains doesn't apply to real estate, but yes I understand the sentiment.


       Since Washington apparently has now instituted State Wide Rent Control  (shades of communist Russia) I can't imagine that makes it a better place to be a landlord.

      0Reply
  • Lindsay DavisBusiness Member
    Real Estate Broker · Birmingham, AL · Member since 2019 · 322 posts · 200 votes
    1y

    @Hailey Peterson,

    I’d like to offer a slightly different perspective here: analyzing "appreciation and demand” from a statewide level probably isn’t granular enough. If you zoom in, you’ll find markets in both WA and TN that are growing rapidly—in Tennessee, for example, Clarksville and Murfreesboro come to mind.

    And even markets themselves aren’t homogenous. In some cities, it’s the submarket that matters. In Chattanooga, as I’m sure you’re aware, the Red Bank area is very different from Avondale, even though they’re only a few miles apart.

    There’s also an underrated advantage to investing in your own backyard: you’re more familiar with the geography and you know the submarkets off the top of your head. It’s also easier to build a team, check out properties, and speak to tenants.

    An out-of-state deal is definitely possible, but you’ll have to leave the heavy lifting to a property manager or opt for a turnkey arrangement. Just my two cents!

    205-205-4118
    Spartan Invest4.8134 Reviews
    WebsiteView Page
    2Reply
  • Ephraim Maldonado
    Investor · Tustin, CA · Member since 2017 · 15 posts · 0 votes
    1y

    Biggest thing is separate and write down your goals. And focus on what you can control. If its cash flow, appreciation, capital preservation. All are good but see what is the most importantly to you. I’d definely love to reach out and see how i can help you walk through whats holding you back. I’m in Nashville myself. Originally from california. But i invest here full time 

    0Reply
  • Slade Dean
    Member since 2025 · 2 posts · 2 votes
    1y

    Hey Hailey! 

    Nashville, as you know, is a quickly growing area. The Chattanooga area is a great area, however, research in Williamson, and Wilson county! They are beautiful areas with a TON of potential. Furthermore, if you want to get very specific with wants then they're great counties because there are so many homes. Most of them are very unique, and your criteria would be met a lot quicker.

    If you have any questions, don't be afraid to reach out!

    0Reply
  • Trey Maclin
    Property Manager · Eastern Region, US · Member since 2023 · 39 posts · 16 votes
    1y

    I'm late to the party but, as a Chattanoogan, watching both the rental demand and the community grow by leaps and bounds over the past decade with no end in sight (much to the consternation of older residents :P ) I can't recommend this area enough. I've had a ton of investors dip their toe in and seen a lot of success. 

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free