How do you tell if you are looking in an A-B-C-D class neighborhood when it comes to searching for properties to buy and hold? I understand that it will depend on which part of the country you are in, etc, and that a $300K place in Los Angeles might be a C for that area but a $300K place in Huntsville, AL might be an A+.
I'm looking to buy properties in the area of Knoxville, TN (pop. ~183,000) and was wondering if anyone had any incite on how I could best rank the neighborhoods based on a couple of key factors. Is it best to just simply go by median household income, crime rate and K-12 school rankings?
Hey Tyler. I'm also from Knoxville. It seems that school district is important to a lot of people around here, but that may be more so for people looking to buy rather than rent. If you're looking to rent to UT students, proximity to campus is probably important. Ultimately, I think a good broker can help you find out where the hot neighborhoods are now and also where the hot neighborhoods/towns will be 5-20 years from now, which is probably what you care more about for buy and hold. Good luck. PM me if you want to get together sometime and talk REI.
If you need help with apartments or multifamily, I'm a commercial agent here in Knoxville. I'd be happy to help!
I'm actually looking at doing both flips and buy/holds and having them fuel each other, so to speak. I'll def PM you sometime. Me, my wife and daughter are actually living about an hour outside of Knoxville right now until we can sell our current home. All my connections are in Knoxville so I'm trying to get back there asap. lol
So Ryan, since you are the agent in Downtown Knoxville, what are the up and coming neighborhoods right now? I know they are doing work to upgrade the edge of South Knoxville across the river from Neyland, but how far back do you think the influence of that new space will stretch? South Knoxville could use some work for sure.
Get yourself a map. Then start identifying the places you are thinking of investing. From there start driving and walking the neighborhood(s). What kind of shops are there? Are their families out and about? Do the people look more like a young professionals crowd?
Exactly how you define A-D is your decision but understanding where people live is a good starting point. You want your SFH rentals in areas with lots of kids. Your apartment buildings targeting a certain group should be near places that group is going to want to be.
To find potential up and coming places look for multi million dollar construction projects that AREN'T roads. New shopping plazas, overhauled grocery stores or massive new office buildings.
A lot of Knoxville is hot right now. Downtown continues to show growth, apartments, condos, and restaurants continue to be added. West Knoxville is steady along with North Knoxville. You mention that development in South Knoxville where the old Baptist hospital used to be. I feel the waterfront and alittle into south Knoxville will grow in the future but beyond that I don't see much change.
Thanks for the insight. I'll have to do some research on where the large (non-road) construction projects are in Knoxville. Seems like most of the time they're working on NOTHING but roads. ha
Thats too bad South Knoxville may not improve much overall, despite the waterfront construction. Is it true that Knoxville is in a deep 'sellers market' right now? What's the market inventory at right now - less than 3 months?
I could be wrong on the waterfront but I just can't imagine it getting much better past the waterfront.
It is definatally a seller's market. We have the fewest homes on the market since 2006.
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