BiggerPockets! I work at BP and I'm working on building a landing page for Tennessee and the cities of Chattanooga, Knoxville, and Memphis. Would anyone be willing to share why you choose to invest in any of these cities or the state in general? What makes it so wonderful?
Excellent economic outlook, friendly state for business and jobs are plentiful. Interesting mix of new construction as well as older construction for potential flips. Lots of commercial development in many areas, so plenty of things to occupy us when the day ends.
Disclosure: I'm in Knoxville so I can only speak about Knox and surrounding areas.
Happy to discuss about Chattanooga. Moved here from Los Angeles seven plus years ago. It's been a tremendous opportunity.
@Brian Levredge what is it that makes Chattanooga good for you personally? I'm assuming it's significantly cheaper than LA ;) but what else has it allowed you to do as an investor that LA/CA wasn't able to provide?
@Lauren Hogan It's way more than that. Yes, cost of living is much less here. People are not a slave to their rent or mortgage payment as they are in SoCal where I'm from. The business environment is much healthier though. As a result of that there are far more opportunities, even when the market is heated up like it is now. Overall the quality of life is much better in Chattanooga. Less traffic, pollution, people, etc.
My wife and I moved to Chattanooga two years ago for the same reasons as Brian. We moved for the main reason of being unable to afford to invest in anything in the Bay Area (where we were both natives). Since moving we've been able to buy a personal residence (which we plan to fix and rent out in the next year) plus we just finished our first BRRRR. Yes, we could have done long-distance investing, but the cost of living is so much cheaper here as well as no state income tax makes it so we can live on half my income and save all of my wife's. Even in this hot market, there are plenty of deals left to be had and the city keeps adding jobs and looks to be growing for the foreseeable future.
@Lauren Hogan Would you mind checking BP re: your post? The question in your post says, re: Greenville, SC, yet everyone is answering re: Chattanooga, TN. I am viewing the thread on an iOS device, on the Apple app. Interestingly enough, we have properties in both (great) markets! 😃
Cheryl - thank you for catching the error, it's updated as this thread is about Tennessee!
Chattanooga is in the midst of a decades-long restoration, lead by the City itself. Easy access to bigger markets like Nashville, Atlanta, Charlotte, etc. without the big city headaches. You can be on the slopes or on the beach in a half-days drive. Tennessee as a whole is a logistics hub (ex. FedEx in Memphis) due to it's location and infrastructure, which should continue to create value for the state long-term.
**Moved from Austin, TX in 2019**
As a native, just remember— our conservative values is what has made Tennessee the place that it is! So welcome everyone but please don’t bring the California politics With you as as we welcome you to Tennessee. We have to keep our state income tax free.
@Lauren Hogan I wish I could say I have invested here, we plan on moving as soon as my daughter is off to college or a career. I’ve been looking in my markets (western Chicagoland) however I’ve also been looking at markets down in Tennessee as a place to buy and hold property as moving there eventually is not an if but a when.
@Brandon Lucy I have found that Tennessee has an interesting mix of being conservative but also implanting liberal policies. For example there is state income taxes on corporations. TN was one of the first states to implement free community College to anyone without a degree. Also their TN care program and cover TN for kids is very progressive and provides health insurance for many people not just the extremely poor.
My Mom says : @Rhonda Blue grew up in Taft TN visiting Gatlinburg every year until teen years. As an adult married with family learning to be an active investor remembering how awesome it was. Now returning after 13 years in Orange County, CA living life on the farm working with our with STR, airbnb, Vrbo. Making a life for ourselves and our family locally here in and around Knoxville, Sevierville, Pigeon And Gatlinburg. Loving the life investing and being our own boss living our freedom numbers and loving every minutes of it.
Knoxville is growing by leaps and bounds. Lenoir City has so many new developments. Gatlinburg/Pigeon Forge has always been here and will continue to be here. Farragut / Turkey Creek. Also so much growth.
To second what @Brian Levredge , @Account Closed have said, there are lots of economic engines that have come and continue to come to this area for reasons stated above. We oddly enough moved back from SoCal 3 yrs ago as well bc of the growing infrastructure in the area, affordable housing (when compared to our old backyards - Inland Empire/Orlando), reasonable drive to the MTNs/Beach, ~1-2 hr drive to larger cities/airports, and just frankly the beautiful landscape of the Tennessee valley! When consider where we are geographically, we are at the center of the southeast triad between the the Nashville, Memphis, and Knoxville markets,...we are the flux capacitor of the South. The mix of people continues to grow as more out of town businesses/opportunities land here. The airport here is actively in process for expansion to allow more "single hub" flight connections. VW is building its 2nd massive line here for EV vehicles. Just south of us over the GA border, Commerce GA is cleared for its US based plant to build EV batteries (SK Group, largest Korean battery company for Li-ion's). Maybe we cant be Silicon valley, but.....EV Valley?!? EPB (electric power board- electric co) has done a fantastic job with creating one of/if not the best fiber optic networks in the world, the infrastructure for more tech based companies has and continues to be laid here. Just a few of the reasons we like the area!
@Lauren Hogan - I love the investing in the Knoxville market from out of state mainly because I find it right now to be one of the best markets to get a combination of cash flow and appreciation. Lot's of gentrification taking place and millions of dollars being invested into redevelopments of the Downtown North and South Waterfront projects. Rent Growth is doing well, in fact recently ranked #1 in the nation according to Moody Analytics Prelim 2019 Q4 Report. 110 million dollar Airport Renovation and job growth of almost 4% in the last 12 months according to Bureau of Labor Statistics. In addition to that, with the current uncertainty of the market, Knoxville was ranked #5 most recession proof city to invest in based on of how consistent employment has been during the ups and downs of the US Economy in the past.
Here are reasons why I love the Memphis market:
1. Memphis is a large stable market: the MSA (metropolitan statistical area) is 1.3 million people. Its population did not change significantly through recessions.
2. Employers and industries are diverse: logistics (FedEx, Amazon), healthcare (Baptist Memorial, St Jude), other industries (Technicolor, International Paper). There is not a single primary employer in a single industry.
3. Companies are investing: Spending on new downtown Memphis development projects are projected to surpass $2.9 billion in the next several years. Over 250 revitalization projects, valued at $13 billion have been completed in the last few years. FedEx has pledged $1 billion to modernize its Memphis SuperHub. St. Jude’s Children’s Research Hospital has planned a $1 billion downtown expansion. Nike and Amazon recently broke ground or opened distributions centers.
4. Landlord friendly laws: termination notice for nonpayment of rent is 14 days.
5. Cost per multifamily unit for B/C class asset is affordable due to high cap rates: $30-$50K/unit.
6. There are thriving class A neighborhoods: Downtown, Cooper-Young, Overton Square, University District, East Memphis, Crosstown, Germantown. And more quiet residential solid class B neighborhoods like Raleigh and Southeast Memphis.
Updated 11 months ago
See more details at my <a href:"https://www.biggerpockets.com/member-blogs/12850/89107-best-multifamily-markets-and-hidden-gems">Blog Post</a>
Top reasons why Investing in Tennessee is advantageous:
1) No state income tax
2) Logistics hubs and centrally located to Southeast, Midwest and Northeast
3) Weather and quality of life is better. We may not have California weather, but we make up for in affordability, tax climate and way of life.
4) Job and population growth
I am interested in investing and buying Self Storage Units, in the Columbia, Franklin or Nashville area, all other parts of Tennessee will definitely be considered, any suggestions and or mentors out there??
A bit tough to come by, and expensive! I can put you in contact with a local guy that deals in self storage in the area if you are interested.