Hi, my wife and I are just starting out with expanding into long distance investing in the Knoxville area, so looking to build a team and get some local advice.
Two questions we have to start:
- Our original approach was to target cash purchases for distressed properties at the lower end of the market. But with the seemingly high level of competition in the area, as well as super low rates currently for financing, is there a case to be made for significantly more upside at the higher end of the market (ie. 300k+).
- 2 particular areas I have heard mentioned recently are Sweetwater and Cleveland...any insight into those areas for buy and hold potential?
The main reason we have chosen to focus on the Knoxville area is that we have local family there who have agreed to help with boots on the ground support to see properties, manage contractors, etc. It also makes the plunge into long distance investing just a little less scary! We have 3 rental properties so far in the Denver, CO area, but looking to really scale our portfolio now, and try our hand at the BRRRR method.
Any insights or advice would be much appreciated!
Hey man and you have picked a great place to invest in. I am one of the top Realtors in this area with 10+ year experience. Have seen a huge amount of growth and its one of the hidden gems (not much anymore) around the US.
I work heavily with investors and I am currently working with another gentlemen from Colorado who just started his porfolio in Knoxville.
To answer your questions.
- Approaching distressed properties in the lower end of the market is always a good idea but as you said, if you can find them. Now you are considering, 300k+ properties. Depends on what you are looking to do with them. Rent and hold or flip?
-If you are playing the long game, small towns like sweetwater and cleveland maybe a good idea for you but for me it just takes way to much time for upside. For rent and hold, it could work pretty well.
Also having local family around that you can call for emergencies is a great benefit.
Lets connect and happy to help you in the future if you would like.
@Wala Habiby Thanks for the info! Definitely targeting the long term buy and hold strategy. I’ll follow up with you to set up a time to chat further.