Chattanooga vs Knoxville & Johnson City vs Clarksville vs ?

[Josh Malgieri]

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!