Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
I know someone thinking of investing in Tennessee. Their daughter will be going to college there in a few years and they're thinking of buying a house to rent and hold. Nashville, Cleveland, Cattanooga or ? Thoughts? Student housing?
Also, when buying in Tennessee, what differences are there that you know of from buying in California (other than pricing)? Process, etc.?
You can make a good deal just about anywhere with the right strategy. Knoxville and Memphis are strong rental markets, but appreciation may be modest. Many parts of Nashville have good appreciation, but finding a strong rental property with cash flow is challenging, but can be done. Chattanooga can go either way depending on the part of town. Smaller towns have fewer buyers, so buying with value can be done more easily.
Prices in TN are much lower than equivalent property in CA. Also purchasing is much easier and straight forward here than CA. Nobody submits a resume or essay with an offer. You send an offer (or a contract), along with proof of funds or credit letter, and you are done. Many offers expire in 2 or 3 days, so sellers have to make a decision quickly. If you are getting a bank loan, you can close in about 30 days. Cash buyers can get it done in 4 or 5 days if needed.
Your wish list is our do list. We moved out of SoCal just 3 months ago. Came to Knoxville area. I discovered the Pigeon Forge, Gatlinburg area for investing and never looked back. I have investments LTR in Huntsville, Madison AL. and some STR here in Pigeon Forge. It's a great market. Knoxville, and Chattanooga are also great markets for LTR. PM me if you want to chat sometime.
Hello @Michael R. - your take on Chattanooga still holds - very stable market, good cash flowing opportunities.
Home prices and rents have both increased over the last few years, but we're not a market that traditionally experiences "bubbles". Still plenty of opportunities to build a solid portfolio.
Feel free to reach out if you have any more questions or would like referrals to local agents or lenders. My husband and I have been investing for the last 3.5 years and have built a good team. Happy to share.
I moved out to Chattanooga about six years ago from SoCal. One of the best decisions I've ever made. Great place to live. Great market that is close proximity to about half a dozen other markets, including Nashville, ATL, Knoxville, Huntsville, Birmingham, etc. All can be reached in about 2 hours by car.
I am a NoCal transplant, though we moved when I was a kid so I’ve seen the evolution of Chattanooga from a dirty city you didn’t walk around in at night to one of the top cities in the nation consistently voted as one of the best places to live/visit/invest in. I’m an experienced Realtor/newbie investor. My first buy and hold has become a phenomenal investment, and with the development plans the city has in place, you really can’t go wrong. As far as living goes, I have moved out of Chattanooga several times - back to NoCal, to Nashville, to Knoxville, to Vancouver, and to Atlanta before eventually landing back in Chattanooga for good. There is a reason why we keep popping up on the best of the best lists! You can’t beat the outdoor life here - tons of rock climbing, hiking, mountain biking, kayaking, rafting, etc. We have a great mix of the city, river, mountains, and country. The city mayor is super progressive and has done awesome things for the music and arts in the city. Lots of artists commissioned by the city to work on projects throughout for public art. He also developed a music district in the city with plans to scale it like Austin TX music scene. There are more things music related going on in the city than I can really mention here.
Thats great @Rhonda Blue, CA is truly made up of insane people leading it and I can't wait to run. I have about 10 years left til she's off to college during which i can research and decide where to go, if to the Southeast or somewhere more like Montana etc. BUT rentals in the South are definitely appealing. I have some friends that had a portfolio in Missouri and they were very happy with things there.
@Christina J. thanks very much for the advice and direction. I keep going back and forth in my head between Chattanooga and Knoxville, but my gut/heart tells me Chattanooga for some reason. I think it just seems more desirable from a natural beauty position so I'd imagine most baby boomers would rather retire there in the next 10-20 years than K-ville? Accurate? So i've been doing some prelim research on small local banks in the area for lending, ones who would lend to out of state investors and especially ones that might do investment renovation loans, etc. Any ideas on small local banks in the area that are investor friendly? Any leads on realtors specializing in investors would be appreciated. Who do you use/recommend for property management? I looked the other day and there seem to be a decent selection to choose from, although some seemed more professional than others based on websites?
@Brian Levredge thanks for the thumbs up on Chattanooga. Are you buying in the area?
@Michael R. It is actually my daughter. She wants to move there one day, and is thinking of buying beforehand. They also have a daughter that may be going back there from CA so that she can go to school. Keep us posted on what you find too.