Starting out with real estate investing in Knoxville

10 Replies

Hello! I will be graduating college this upcoming year and moving to Knoxville in summer of 2021. I've been itching to begin my real estate investing to start learning through experience how to make stable passive income. Just a little bit about my financial situation- I have some college debt around 25k, a payed off car, around 10k saved, and a few investment vehicles started like some real estate crowdfunding (AHP) and MC Laubscher's(The Cash Flow Ninja)  whole life insurance policy used for infinite banking. Salary wise I will be graduating with a job from an area that pays a lot higher than average Knoxville salaries and working remotely from home. My boyfriend will also be moving with me and in the same financial situation except no investments yet and a second loan for a car. 

I have a plan started of which investments I want to start working on but don't know where to begin! I was thinking of buying a single family home and using BRRR as my strategy. I would think I should buy a home on the cheaper side of what I could afford to be conservative with money and lower my expenses and living below my means starting out. Maybe find a home in the 150-250k range then after living in it a year and renovating, rent it out and refinance to use for a downpayment for a second single family and start down that path. Not sure which areas to look in specifically based on schools or higher rent rates and occupancy rates. Maybe long term invest in some student housing or apartments right in downtown knox? Looking for advice or connections with anyone interested! Id love to take anyone in the area to lunch (my treat) to learn more so I can spend this next year preparing for my move!

Hi Adelaide. Knoxville is a wonderful area to both live and invest in.  We have a couple areas growing with plenty of appreciation right now, yet as expected comes plenty of competition for those zip codes.  Do you think you want something where you could house hack in or have this as something totally different from your living situation?

Adelaide, you are way ahead of the game, kudos to you. I wish I had house hacked way back then, so yes, even better if you can find a deal so sweet you live for free and bank, then scale into a quad after a year. All the best!

Hi Adelaide, Sounds like you have put a lot of thought into your investing plan, Awesome. Enjoy the journey. One option you could utilize if your credit allows you to qualify is to purchase bigger and have room rentals roommates, etc. So many options that the best thing to do is run the numbers and make sure you can afford it even if rents are low. When your in the area it would be fun to have lunch! 

Hello Ruth! Great point and that is definitely a possibility I will look into. This is what is making me more curious about the types of tenants in the different areas and their job stability or maybe it’s more family’s or just singles who would want to rent by room. Thanks for the advice and I’d love to stay in contact to schedule a lunch! 

Hey Adelaide!

One really nice thing is you could possibly come in below that 150-250k for a decent SFH in a good area. South Knox is my preference although all the investors are already aware. Y'all could keep your cost of living super low to free up capital for investing and paying off debt! Do your research on the south loop and all the outdoors stuff in south Knox because there is a large desire to live near these!

South Knoxville is were the young professionals, such yourself, are moving. As Jacob mentioned there are a lot of attractive things about this area (Ijams and the Urban Wilderness, 5mins from downtown, breweries, near UT for gamedays, larger lots, county taxes potentially, etc, etc). "SoKno" now also fetches some of the highest $/sf in Knoxville. Rivaling even our old money luxury neighborhood, Sequoyah Hills. So you'll need to stay in the small square footage to stay around $150k (think 700-1000sf rehabbed) but there is opportunity to buy houses that need work. Those small houses make great rentals and you should see strong appreciation and rent growth there to boot. 

SFR's are great, the most secure real estate asset to own imo. Consider a 2-4 unit as well though and live free from day 1. They are harder to find anymore but I got started with a duplex myself and it was a huge boon for my career and today is a cow. Real estate is about the long game, think 2-3 steps ahead with each decision, focus on the end goal, and you'll get where you want to be.

Feel free to reach out with any Q's about Knoxville or investing. Welcome.

@Adelaide Wolcott hi for your situation I would advise to find a home that you can be in for few years while you get some extra savings ready for your next project. You home hack to get the benefit of cheap rates and 30 year loan and also, rent out part of the house to also get some of your mortgage paid for. 
Happy to help if you need any advise in the local area. I am experienced investor and Realtor, and I started by house hacking my first property back in 2015. 

Hi @Adelaide Wolcott ! My husband and I have 5 long term rentals in Knoxville and are housing hacking our basement. I would love to get together and chat about Knoxville and real estate! We got started with a live in flip as well! I wish we had started earlier like you are! We love the BRRR method. It has been harder to find deals recently in the areas we like. Good luck and feel free to reach out anytime!

Originally posted by @Adelaide Wolcott :

Hello! I will be graduating college this upcoming year and moving to Knoxville in summer of 2021. I've been itching to begin my real estate investing to start learning through experience how to make stable passive income. Just a little bit about my financial situation- I have some college debt around 25k, a payed off car, around 10k saved, and a few investment vehicles started like some real estate crowdfunding (AHP) and MC Laubscher's(The Cash Flow Ninja)  whole life insurance policy used for infinite banking. Salary wise I will be graduating with a job from an area that pays a lot higher than average Knoxville salaries and working remotely from home. My boyfriend will also be moving with me and in the same financial situation except no investments yet and a second loan for a car. 

I have a plan started of which investments I want to start working on but don't know where to begin! I was thinking of buying a single family home and using BRRR as my strategy. I would think I should buy a home on the cheaper side of what I could afford to be conservative with money and lower my expenses and living below my means starting out. Maybe find a home in the 150-250k range then after living in it a year and renovating, rent it out and refinance to use for a downpayment for a second single family and start down that path. Not sure which areas to look in specifically based on schools or higher rent rates and occupancy rates. Maybe long term invest in some student housing or apartments right in downtown knox? Looking for advice or connections with anyone interested! Id love to take anyone in the area to lunch (my treat) to learn more so I can spend this next year preparing for my move!

 Sounds like you have a great plan.  I started young too age 20 buying rentals and was able to retire at 35 with just under 50 units, currently age 39. As im not an expert in knox market like these other people. East tn in general has lots to offer investors, Great tax climate, job growth, balanced budget state. I enjoy investing here. Reach out if you need any help on the investing strategy side. Keep up the great work.