Real Estate investment in Tennessee

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Real Estate investment in Tennessee

Ade Ogunsanya

Member since 2020 · 4 posts · 1 vote

I'm a Canadian interested in vacation real estate investment in Tennessee.

Which city/location in Tennessee is the best to invest? What is the best way to source for these properties?

What are financing terms for Canadian investors? Thank you.

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Avery CarlBusiness Member

Real Estate Agent · USA · Member since 2016 · 909 posts · 1k+ votes

@David Goodman booked solid and at higher prices than we have ever seen. I think most regional/drivable vacation markets are seeing this across the country. We are seeing it in the FL panhandle with our other STR as well. Covid seems to have changed travel in a way that benefits owning in regional vacation markets. People are dying to get out of their houses, but they don't want to get on flights or go to big metro areas, so they are doing drive vacations to markets like G-Burg.

Podcast Guest on Show How to Get More Airbnb Bookings This Spring and Summer Break

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Julian Sage
Property Manager · FL · Member since 2018 · 104 posts · 36 votes
6y
@Ade Ogunsanya nashville is pretty popular as far as STRs, regulations can be a bit funny there so you have to have the right kind of property.
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Timothy Lewis
Investor · Miami, FL · Member since 2013 · 377 posts · 258 votes
6y
@Ade Ogunsanya
Memphis is a great area.
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Melissa Wesling
Investor · Chicago, IL · Member since 2020 · 148 posts · 97 votes
6y
I love visiting Nashville! Rented, Inc published a study in July that rated the Smoky Mountains is ranked #4 in the USA for best return on investments. It's important to work with a real estate agent familiar with the vacation rental market so that you research properties that are located in rental friendly areas. Have fun with your search!
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Sean Tagge
Investor · Lehi, UT · Member since 2015 · 435 posts · 300 votes
6y
Nashville is a great city but getting very overpriced probably wont find any great cash on cash ROI on rentals but good appreciation.
Memphis is still relatively low priced and has high rents comparatively and has some stable employers.
Chattanooga is growing rapidly kind of in the middle of Nash and Mem.
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Jeffrey Holst
Investor · Chattanooga, TN · Member since 2016 · 676 posts · 543 votes
6y
I am a fan of Chattanooga
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Kaustubh Johri
Investor · Atlanta GA · Member since 2018 · 188 posts · 71 votes
6y
Just my 2 cents -
Nashville - getting overpriced , make sure it meets your investment goals , ROI etc
Memphis - Certain pockets are war zones and you want to steer away from those places
Chattanooga - Probably your best best.
I am not affiliated with Neal Bawa or his company but I like to use his metrics when searching a market. Details are in the link below:
https://www.grocapitus.com/using-data-to-become-an-elite-investor-with-neal-bawa/

www.city-data.com is a great tool to analyse those metrics and determine if the market is feasible or not. I follow his guidelines but do not hold it to the exact number.
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David GoodmanBusiness Member
Realtor · Nashville, TN · Member since 2020 · 172 posts · 92 votes
6y
@Ade Ogunsanya
Their is a good podcast talking about Gatlinburg, TN area in the Mountains. I know Covid probably didn’t help, but Gatlinburg tourism has ridden the waves of economic ups and downs in a stable way. And since the area pretty much only tourism, you don’t have to worry about the city adding challenges like you do here in Nash.
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Avery CarlBusiness Member
Real Estate Agent · USA · Member since 2016 · 909 posts · 1k+ votes
6y
@David Goodman podcast #364 :)
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David GoodmanBusiness Member
Realtor · Nashville, TN · Member since 2020 · 172 posts · 92 votes
6y
@Avery Carl
Haha thanks for chiming in!
What are you seeing in Gatlinburg since Covid hit?
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Avery CarlBusiness Member
Real Estate Agent · USA · Member since 2016 · 909 posts · 1k+ votes
6y
@David Goodman booked solid and at higher prices than we have ever seen. I think most regional/drivable vacation markets are seeing this across the country. We are seeing it in the FL panhandle with our other STR as well. Covid seems to have changed travel in a way that benefits owning in regional vacation markets. People are dying to get out of their houses, but they don't want to get on flights or go to big metro areas, so they are doing drive vacations to markets like G-Burg.
Podcast Guest on Show How to Get More Airbnb Bookings This Spring and Summer Break
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David GoodmanBusiness Member
Realtor · Nashville, TN · Member since 2020 · 172 posts · 92 votes
6y
@Avery Carl
Well there you go... that’s awesome to hear!
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Joaquin Jesus Salcedo San Martin
Accountant · Middle Tennessee · Member since 2016 · 18 posts · 1 vote
6y
@Ade Ogunsanya
Anything around Nashville is booming. Murfreesboro is a great place!
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Chuck Kramer
Orlando, FL · Member since 2017 · 241 posts · 254 votes
6y
@David Goodman Once things reopened here in Sevier County on May 1, people flooded back in. According to local governments, occupancy is around 90% or more (measured by tax revenues). Nearly every business is packed and short-handed on staff. Mahor exceptions are dinner shows (still closed voluntarily), water parks, and Dollywood. People are opting to come but apparently don't want to be in areas where crowding is a potential issue. The mask mandate probably takes some blame too as it has also been *hot* this year.

@Avery Carl is right about bookings and rates. Many owners using pricing tools are seeing 50, 60, and even 100% higher rates book quickly this year. Our own cabins are booked at about 90% even in September, which has tended to be a slower season in the past.
So, in short, "it's hopping"!
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Bonnie Rhodes
Real Estate Agent · Nashville, TN · Member since 2020 · 77 posts · 71 votes
6y
@Ade Ogunsanya I recommend Middle TN! Clarksville (Fort Campbell nearby), Murfreesboro (Middle Tennessee State University in the city), commuter cities to Nashville, etc.
Nashville can be a difficult place to get a STR because of regulations and obtaining a permit. New-non-owner occupied permits are rare in Nashville and have to be within certain zones. It is a hot market for people buying right now, but investors looking inside of Nashville are typically rehabbing to sell.
I'd be happy to answer any questions you have!

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John BrittPro Member
Real Estate Consultant · Chattanoooga, TN · Member since 2008 · 194 posts · 52 votes
6y
@Ade Ogunsanya Memphis has companies set up to work with foreign investors. They are set up to take you from step 1 as a new investor in the U.S. to actually owning an income producing property. Chattanooga on the other hand is a small city, but we are growing. You can find good deals to invest in with good returns and you can anticipate the property value to increase as well. There are spots that have not been explored to have some unique STR.
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Bonnie Rhodes
Real Estate Agent · Nashville, TN · Member since 2020 · 77 posts · 71 votes
6y
@Ade Ogunsanya I recommend joining Real Estate Investment Facebook groups for the cities you are looking at - you can make a ton of connections that way and get a good idea of what properties are going for.
Same with financing. If you are looking for hard money lending, many are in these Facebook groups and will be more than happy to connect with you and explain their terms. The direct source for hard money lending is your best bet on advice for financing!
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Ade Ogunsanya
OP
Member since 2020 · 4 posts · 1 vote
6y
Thanks, Bonnie.
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Dan BeaulieuPro Member
Lender · Knoxville, Tennessee (TN) · Member since 2016 · 422 posts · 667 votes
6y
Originally posted by @Kurtis Montgomery:
@Ade Ogunsanya Chattanooga is frequently ranked as one of the best places to live by Outdoor Magazine and Wallethub. We are able to get 1.25 - 2% rentals in C class areas.
We have a few good wholesalers in the area, I am one of them. DM me for website and contact info and we can chat.
Definitely reach out to Kurtis, We fund a lot of his deals for his buyers and he is one of the few wholesalers that puts out decent stuff

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Austin Deeney
Homeowner · Prattville, AL · Member since 2020 · 1 post · 0 votes
6y
@Avery Carl, I understand you’re mostly focused on the G-Burg area...but what about 30-45 mins outside of Pigeon Forge (while still close to Knoxville)? Douglas Lake, Cherokee Reservoir, etc. Are you seeing any uptick in those markets as overflow from G-burg since the higher rates? Or would those areas be too far away to capture any of the tourism associated with G-Burg/Pigeon Forge/Sevierville?
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Avery CarlBusiness Member
Real Estate Agent · USA · Member since 2016 · 909 posts · 1k+ votes
6y
@Austin Deeney At that point, you are moving away from snagging the Gburg and PF tourists and into what I would consider different markets. Douglas Lake can be tricky, and a few of the developers are doing some things there to try and make it cooler, but they drain the lake 6 months out of the year and at other times as needed so you lose the lake front part of your lot for quite a bit of the year. The folks traveling to Knoxville and Cherokee Lake are usually not going down to the attractions in PF, so it would be something you'd need to analyze independent of the Smokies numbers.
Podcast Guest on Show How to Get More Airbnb Bookings This Spring and Summer Break
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