Best value towns outside Nashville?

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Nicholas MischPro Member
Investor · Broadview Hts, OH · Member since 2016 · 310 posts · 280 votes
4y

Cleveland sill has some of the best cash flow and often you even get appreciation depending on property type and location. You can also find value add with cash flow in the burbs if you know how to look. 

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  • Brad Hornecker
    Flipper/Rehabber · Nashville, TN · Member since 2018 · 35 posts · 16 votes
    4y

    I'm interested to see what others think here!  I plan to build a rental portfolio in and around Nashville.  

    2Reply
  • Eric ColburnBusiness Member
    Real Estate Broker · Nashville / Franklin - Tennessee · Member since 2017 · 3 posts · 3 votes
    4y

    Depends on how far out you're from Nashville and the types of returns you're looking for but Columbia is a hot market right now if you want to stay closer to Nashville area. Otherwise I have clients buying down around Chattanooga / Cleveland area.

    [email protected]615-495-9175
    1Reply
  • Nicholas MischPro Member
    Investor · Broadview Hts, OH · Member since 2016 · 310 posts · 280 votes
    4y

    Cleveland sill has some of the best cash flow and often you even get appreciation depending on property type and location. You can also find value add with cash flow in the burbs if you know how to look. 

    2Reply
  • Charles JabaleyBusiness Member
    Realtor · Chattanooga, TN · Member since 2019 · 46 posts · 34 votes
    4y

    A lot of investors have been starting portfolios here in Chattanooga because of the recent appreciation we've had (15% growth each of the past 2 years), and because it still has a lot of room to grow. It's a favorable rental market here, with a steady diet of young professionals flocking in. The city has put a lot of resources into developing the downtown area as well, which should continue pushing up property values to the surrounding pockets. Steady population growth and job growth, along with some other favorable market indicators, continue to make Chattanooga a pretty popular choice for both local and remote investors. I've heard good things about Columbia as well (I have also done some remote wholesaling there). 

    Buyer demand in Chattanooga is very high right now just like a lot of cities, with the amount of first-time home buyers and out-of-state buyers moving here from some larger areas like California or New York. So it's definitely a competitive climate, but I'd be pretty surprised if Chattanooga prices changed their upward trajectory any time soon with the amount of demand we're seeing. Just my two cents!

    1Reply
  • Dave Villa
    Member since 2020 · 20 posts · 12 votes
    4y
    Came on here to post this exact question this morning - I have two properties in Nashville and have been looking to expand to neighboring cities as well because it's so expensive here now. I've heard good things about Clarksville as well as Huntsville, Alabama which has lots a strong paying job market being an aerospace mini hub/including NASA as well as some other solid companies. Need to do more research on housing analytics for both cities
    2Reply
  • Lane C.
    Rental Property Investor · San Jose, CA · Member since 2020 · 47 posts · 4 votes
    4y

    @Charles Jabaley how is Chattanooga for str?

    0Reply
  • Eric ColburnBusiness Member
    Real Estate Broker · Nashville / Franklin - Tennessee · Member since 2017 · 3 posts · 3 votes
    4y

    Clarksville is still a good market however be sure to watch out for the property tax increases that occurred recently and double check the tax records to ensure you've calculated the upcoming year, not the current year to avoid underestimating your tax rate. Go directly to the county city tax appraisal source. Do not rely on Zillow, Realtor.com and even MLS etc to give you correct numbers as these can be old or incorrect. The increase in taxes and the hot sellers market has made finding deals in Clarksville more difficult. I bring that up only to point out that we've had some people miscalculate their tax rate recently when forecasting their rental property purchases in Clarksville. Since we were not involved in their transaction and they only came to us for our management services, they were surprised to find out how much less cash flow they would be receiving after we ran our analysis showing that taxes had increased.

    [email protected]615-495-9175
    2Reply
  • Charles JabaleyBusiness Member
    Realtor · Chattanooga, TN · Member since 2019 · 46 posts · 34 votes
    4y
    Quote from @Lane C.:

    @Charles Jabaley how is Chattanooga for str?

    So I know some investors that have had a lot of success with Chattanooga STRs, and it has a huge amount of upside because our city attracts so many visitors. But there's definitely some hoops to jump through (although the approval process is easier now than it used to be). 

    It is required that postcards be sent to all neighbors within 300 feet of the property. It used to only take 1 neighbor objection to deny the STR license, now it takes 4. You can appeal this denial, but it almost always stands if a single member of the objecting party shows up to the appeal. I also want to mention that, assuming it's a non owner-occupied STR, the owner is required to have a business license, an STR license (obviously), and is responsible for collecting and remitting occupancy and sales taxes among other requirements.

    If you see a potential STR opportunity, I'd recommend looking to see if there are currently active STRs on the street... Your chances of getting approved are better because they already had to go through the approval process (assuming they did it the legal way).

    I can connect you with a Property Manager here who specializes in STRs and manages several if you want to send me a PM. He would probably be more help than me on the topic. He also knows the ins and outs of which locations are easier / more difficult to operate STRs. Also here's the city site with some details and points of contact for STRs if that's helpful:

    https://chattanooga.gov/public...


    Hope this helps!



    0Reply
  • Kevin Chubet
    Member since 2022 · 32 posts · 19 votes
    4y

    Keep Clarksville on the down low. I hear Paris TN is where you want to go (kidding)

    0Reply
  • Keith Morgan
    Property Manager · Clarksville TN · Member since 2021 · 14 posts · 5 votes
    4y
    Quote from @Eric Colburn:

    Clarksville is still a good market however be sure to watch out for the property tax increases that occurred recently and double check the tax records to ensure you've calculated the upcoming year, not the current year to avoid underestimating your tax rate. Go directly to the county city tax appraisal source. Do not rely on Zillow, Realtor.com and even MLS etc to give you correct numbers as these can be old or incorrect. The increase in taxes and the hot sellers market has made finding deals in Clarksville more difficult. I bring that up only to point out that we've had some people miscalculate their tax rate recently when forecasting their rental property purchases in Clarksville. Since we were not involved in their transaction and they only came to us for our management services, they were surprised to find out how much less cash flow they would be receiving after we ran our analysis showing that taxes had increased.

    You are absolutely correct about the property taxes in Clarksville. They did increase a little and maybe going up more. I recently called directly to county property assessor's office and they will give you an accurate breakdown with current rates with both city and county over the phone for the address in question. Very informative and helpful with real estate professionals.

    1Reply
  • Keith Morgan
    Property Manager · Clarksville TN · Member since 2021 · 14 posts · 5 votes
    4y

    @Kevin Chubet don't be greedy. Share the wealth! lol

    0Reply
  • Klint Ruud
    Investor · Nashville, TN · Member since 2019 · 92 posts · 96 votes
    4y

    Gallatin, Hendersonville, Goodlettsville, Hermitage, Springhill, and Chattanooga. 

    All the deals I've done in these areas have produced the highest returns. 

    0Reply
  • Ashley Cook
    Real Estate Agent · Gallatin, North Nashville · Member since 2018 · 5 posts · 3 votes
    4y
    Quote from @Klint Ruud:

    Gallatin, Hendersonville, Goodlettsville, Hermitage, Springhill, and Chattanooga. 

    All the deals I've done in these areas have produced the highest returns. 

    We have had exponential growth here in Gallatin, Sumner county Tennessee. Two years ago the median price of homes was 280,000, now the most recent report says it’s around 426,000. like most investors we look for the one percent rule and it’s just extremely hard to find in this area now. We do have a very limited inventory as well. PS I’m an agent. 
    apologies for grammatical mistakes, I’m driving with voice text!
    2Reply
  • Michael S.
    Huntsville, AL · Member since 2018 · 579 posts · 864 votes
    4y

    Would not recommend looking in Huntsville/Madison AL right now - we have 50+ investors writing offers for every house that hits the market right now.  

    If I was going to invest just outside of Nashville, it would be Franklin, Clarksville, or Murfreesboro TN, although I bet the Franklin TN market is just as crazy, if not worse.  

    1Reply
  • Keith Thomas
    Rental Property Investor · Auburn, WA · Member since 2015 · 110 posts · 33 votes
    4y

    Hello All I will in Nashville April 3,-7. I would like to connect with a local agent / investor if possible. I am will be open to some of the areas that I see mentioned. This will be my first time visiting but not my last. If anyone is available for a quick breakfast or lunch to discuss some great locations there Market I am all ears.

    Thanks Keith

    2Reply
  • Keith Morgan
    Property Manager · Clarksville TN · Member since 2021 · 14 posts · 5 votes
    4y
    Quote from @Keith Thomas:

    Hello All I will in Nashville April 3,-7. I would like to connect with a local agent / investor if possible. I am will be open to some of the areas that I see mentioned. This will be my first time visiting but not my last. If anyone is available for a quick breakfast or lunch to discuss some great locations there Market I am all ears.

    Thanks Keith


     I am a local Realtor & residential property manager in Clarksville. I would be open to meeting with you and see how we can help reach your goals. I can meet in Nashville. 

    0Reply
  • Jay Shires
    Investor · Jackson, TN · Member since 2013 · 17 posts · 16 votes
    4y

    I’m an investor west of you in Jackson.  Still getting deals on the regular that meet the 1% rule in b neighborhoods with plenty of appreciation to be had.   Think we are a good choice if you want to come a little further away 

    0Reply
  • Avery Holland
    Real Estate Agent · Nashville, TN · Member since 2019 · 3 posts · 3 votes
    4y
    Quote from @Eric Colburn:

    Depends on how far out you're from Nashville and the types of returns you're looking for but Columbia is a hot market right now if you want to stay closer to Nashville area. Otherwise I have clients buying down around Chattanooga / Cleveland area.

    I am interested in building a rental portfolio in these areas mentioned (Chattanooga, Columbia, Clarksville), but I need help evaluating rental properties.

    1Reply
  • Keith Morgan
    Property Manager · Clarksville TN · Member since 2021 · 14 posts · 5 votes
    4y

    @Avery Holland Hey Avery! I am Realtor and Property Manager in Clarksville. I can help with that. Send me a message

    0Reply
  • Jesse Ruiz
    Member since 2020 · 19 posts · 7 votes
    4y
    Quote from @Klint Ruud:

    Gallatin, Hendersonville, Goodlettsville, Hermitage, Springhill, and Chattanooga. 

    All the deals I've done in these areas have produced the highest returns. 

    We’re these long term rentals or STRs? My wife and I are thinking of moving to Tennessee from Los Angeles, but we can’t decide where.  Hendersonville, and Nashville are two places that we’ve like so far. We have 2 doors in Cali, but the cash flow isn’t the best bc everything is so pricey. 
    1Reply
  • David GoodmanBusiness Member
    Realtor · Nashville, TN · Member since 2020 · 172 posts · 92 votes
    4y
    Quote from @Jesse Ruiz:
    Quote from @Klint Ruud:

    Gallatin, Hendersonville, Goodlettsville, Hermitage, Springhill, and Chattanooga. 

    All the deals I've done in these areas have produced the highest returns. 

    We’re these long term rentals or STRs? My wife and I are thinking of moving to Tennessee from Los Angeles, but we can’t decide where.  Hendersonville, and Nashville are two places that we’ve like so far. We have 2 doors in Cali, but the cash flow isn’t the best bc everything is so pricey. 

     Congrats on the move! Cash flow isn't the best here either (although rents are increasing). Are you looking for a rental while you search for a personal home for purchase?

    615-979-1644
    The Grow Team4.824 Reviews
    WebsiteView Page
    0Reply
  • Paiton Patterson
    Investor · Chattanooga, TN · Member since 2022 · 17 posts · 3 votes
    4y

    Chattanooga is a great area. Rentals are the way to go right now in and around Chattanooga!

    0Reply
  • Corey Martin
    Real Estate Agent · Nashville, TN · Member since 2022 · 54 posts · 36 votes
    4y

    Nashville still has a lot of pockets where you can get great deals done! It may not be the best cashflow market, but the appreciation here is the play. That being said, Murfreesboro, Clarksville, Mt. Juliet, Spring Hill, and Madison are some of my favorite paces to find deals because you can find the deal, rent it quickly, and get good rents for it! As always, I suggest reaching out to agents in the area to help you find the deals and find specifically investor agents such as myself to analyze those deals. 
     

    I also agree with a lot of the answers here about Chattanooga! Some great deals to be had there to and getting cash flow!

    0Reply
  • John WilliamsBusiness Member
    Property Manager · Clarksville, TN · Member since 2018 · 443 posts · 210 votes
    4y

    I can vouch for that here in Clarksville! I manage properties here and we have a very healthy balance of cash flow and appreciation opportunities!

    [email protected]931-272-3065
    Rent My Home - Property Management4.8217 Reviews
    WebsiteView Page
    1Reply
  • Justin Phouasalith
    Investor · Nashville, TN · Member since 2022 · 22 posts · 9 votes
    4y

    Columbia TN has huge potential for appreciation right now. Overall home prices are low, but cashflow will also be relatively low for some time due to their small current population (~43,000). 

    Here's their annual development report if you want more info:

    https://www.columbiatn.com/Doc...

    0Reply
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