Tennessee Multifamily Guidance

[Paul Waterloo]

Good afternoon, I am multifamily broker in Chicago, Illinois. My family and I are seeking to acquire a multifamily asset ($1M - $2M) within Tennessee. Our target is a strong and safe employment area and we are willing to sacrifice overall yield for a safer investment. Our plan will be to hire a local property management firm. 

I'm hoping the local community can advise me on markets to research and consider and any mid-market property management or brokerage firms to reach out to. 

Thank you in advance for the time and help. 

Paul

[Tyler Tapley]

Hey all,

It definitely depends on what city your in. Knoxville, Chattanooga, Nashville and Memphis are all drastically different markets. Properties of that size usually aren't listed in ways which are easy for the public to access. They're also often traded between very large and sophisticated hedge funds. So you're going to need a team that has experience with commercial real estate as multifamily properties of this size don't really fall under residential categories, for a number of reasons. There are definitely worse ways to start than by looking on Loopnet. 

You're instinct to reach out to local community members is a really solid urge. You'll be able to answer questions like "Does gated parking really make a difference here? Does it actually deter crime?" etc. But in very very general terms you'll want to look at your rent rates to see what type of clientele the area attracts, you'll want to determine if the area is seeing any commercial growth or if it's stagnate, etc. In some areas you may even benefit from opportunity zones and etc. 

Hope this helps,