I am a broker in Texas and own rentals in the Houston area, but it has been years since I've come across a really attractive deal. I've heard a lot of good things about Tennessee, but I am not familiar at all with that market. Where should I start looking? Memphis, Knoxville, Chattanooga, are there good deals out there? I'd appreciate any recommendations for agents or property managers as well.
David if you need to understand where to look in Memphis I can share a Memphis Investing Map with you!
@James Martin could please share that with me as well?
No deals around here (knoxville) i have been trying to buy a medium size multi for a year, with no luck. I am calling this market "the tu*d flush segment" of the the r.e. cycle, as now is the time to get rid of under performers, declining area's and such for full value!
I managed to find one house in that time that i believe has equity and real estate is my full time job.
Now the area around dollywood might be worth considering, as i hear it is starving for long term rentals, much more than most markets
Just my two cents worth
Invest in mt Juliet TN and Lebanon TN
Just far enough out to still get the benefits of Nashville but not the heavy traffic.
I’m partial to Memphis just because you can still find “cheap” rentals in good areas that rent for an amount that makes sense.
You won’t get the appreciation of nasheville though. The property taxes in Memphis can be very very little if you’re not in the city of Memphis and one of the surrounding cities instead.
There are a lot of renters and safe, clean rentals in the 750-950ish range go fast.
That being said the biggest downside I think to Memphis from a long distance perspective (like me) and like you would be is the general lack of quality larger multifamily.
You can find it but it’s only in select areas and most of it goes fast.
Also be aware that non owner occupied duplexes are taxed at a higher rate than single family.
It seems like there is growth all over the state, you could probably throw a dart and hit an area with people looking for rentals. There are lots of new businesses locating to and around TN. Facebook has a new data center coming to Huntsville, AL. There are new plants coming to Clarksville, Huntingdon, etc. I work for TVA, so we get emails about new employers and how many jobs they'll create. I used to tell people if I had 20 more houses they'd all be full. After I filled my last one based on the demand that number should probably be 30. We are in Humphreys County, but anywhere near an interstate should be fine. Lots can't afford the rent in the bigger cities and choose to commute.
Hey David! You mentioned Memphis, Knoxville, and Chattanooga. You are missing The Music City...Good ole Nashville, TN. Nashville is a very hot market. I work with a team here and we are averaging 3-6 deals a week most of which are off market. Though Nashville is a hot market the market is currently moving at 75-77% of the after repair value. You have very low days on market with Nashville's rapid growth.
An article in the Tennessean talks about the rankings and trends in Nashville. The emerging Trend in Real Estate Report is based on interviews and survey responses from more than 1,600 real estate experts. Nashville has also been ranked among the Nation's top ten real estate markets for 3 straight years. In Nashville, houses still remain affordable when compared to the nation based on the Trends in Real Estate. Another thing to consider is Nashville rapid growth. On a net basis, 20,000 people are expected to move to Nashville over the next 5 years. I assure you that is a very positive trend to consider when making your investment.
Nashville is a growing very quickly, and right now is a great time to invest here. I'll be honest with you these properties are older, but if you are willing purchase and putting in money for renovations the returns look nice on both single family and multi-unit properties. If you have another questions don't hesitate to ask.
Hi @James Martin
Could please share that with me as well?
@James Martin could you please share that map with me as well?