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Updated about 1 year ago on . Most recent reply

User Stats

5
Posts
3
Votes
Josh Malgieri
3
Votes |
5
Posts

Chattanooga vs Knoxville & Johnson City vs Clarksville vs ?

Josh Malgieri
Posted

Hello BP Community 

I will be doing a road trip through Tennessee from June 27th though July 8th looking for multifamily properties. Starting in Clarksville, Chattanooga, Knoxville and Johnson City. I'm looking for property with a  strong cash on cash return (10% plus) using a 25% to 30% down payment. I welcome suggestions for other areas I have not listed. Here are some details on what I'm looking for:

- Multifamily or portfolio of residential

- Sales price: Up to $750,000 (I'm doing a 1031 exchange (or reverse exchange) on a California rental property    so I need a replacement property of $575,000 or more

- Timeline for purchase: Need to enter escrow by Oct 7th at the latest

- Class: A, B or C neighborhoods with a sales price under 800,000. 

- Condition: Turnkey or Value add. (I'm a contractor so projects do not scare me as long as the lender is on      board)

I briefly drove through these areas about 2 months ago and have have been doing online research since. Seems like Chattanooga and Knoxville are more likely to appreciate with value and rents but Clarksville and Johnson City may cashflow better. In regards to a B- property I'd like to know ease of filling vacancies, vacancy rates, Turnover time, etc.  I would appreciate any insight from the BP community. Also, Any referrals for real estate agents are welcomed. Thanks in advance!

Most Popular Reply

User Stats

29
Posts
13
Votes
Mark Fletcher
  • Flipper/Rehabber
  • Johnson City, TN
13
Votes |
29
Posts
Mark Fletcher
  • Flipper/Rehabber
  • Johnson City, TN
Replied

I'm in Johnson City. Just bought my first rental back in May. 54k purchase price and 10k repairs. It's a 4/3 1,800 sf near the university. Got it rented out at $1,500 before I started the repairs. If you want to go the SFH route, anything near the college cashflows very solid. For anyting between 3 and 5 bedrooms, I use $375 per bedroom to estimate the rent. Just put a 2nd property under contract that I'm planning to flip. It's a 3/2 1,600 sf at 83k and in way better shape that the other. Both were off market deals. I also do some wholesaling.

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