Best/preferred city in Tennessee for house hack??

Question

Hey, first time investor here! I’m from California and I genuinely don’t see myself investing in this market any time soon. I’m looking at Tennessee but not sure which city would best be a match for a house hack. What are y’all suggestions? Is this more of a seller or buyers market? How is this state overall when it comes to their real estate market?

Christopher B. · Answer

I've been to Jackson once, just a few weeks ago actually. It's between Nashville and Memphis, I'd say that is about the only reason it is a city. I live in Knoxville, grew-up in the area so that answers my take on that city. Chattanooga has a good scene and has consistently been named one of the best outdoor oriented cities to live in the South. Nashville is poppin and one of the fastest growing major metro's in the country, it is a pretty cool city and if you want the "big city" amenities then I'd look further into it. It is probably 1.5x's more expensive than the other cities you mention though. There are also nice suburbs of these cities, Murfreesboro, Maryville/Alcoa, Lenoir City, Sevierville, Clarksville, Cleveland, etc. All in all, I don't think you have a bad choice, I meet a lot of people from Cali and they love it here in TN. Welcome.

Lynnette E. · Answer

You may want to look at a net migration chart for TN by county.  Most of the western part of the state (Jackson, Memphis) have a net negative migration.  The best growing areas seem to be south of Nashville and the area around Chat.  When there is a net positive migration/growth in population more housing is needed and prices increase.  With a net loss of population there is surplus housing and the price drops.

Oriane Brice · Answer

@Peter Nikic thank you! I was worried about the balance of those cities. Appreciate you

Kyle Deutschmann · Answer

@Oriane Brice hey Oriane, TN has many great places you can house hack, really just depends where you want to live. I house hacked in Nashville for about a year and a half, which has been booming for the last 10 years, but Id be willing to bet you could make a house-hack work in Memphis, Chattanooga, Knoxville, etc.

TN as a whole has grown a lot due to lower cost of living (lower property tax, no state income tax, cheaper real estate in comparison) compared to most cities on both the east and west coast, as well as a strong, diversified economy, good weather, etc. Only thing is Nashville is pretty competitive (as are most major markets), so you have to get a little creative sometimes to find a great deal. When are you planning to move?

Hannah Singer · Answer

@Oriane Brice

Hello! It really depends on where you want to live. I currently live in Memphis, but I have family in Knoxville, Jackson, Chattanooga, and Nashville. So I know a lot of the cities that you are interested in. Memphis is a great rental market! It is not uncommon for homes to meet the 2% rule, which makes it a popular market for long distance investors. However, Memphis is very street by street and it is important for you to understand which areas are good and which areas are bad. Seriously million dollar houses can be one street away from extreme poverty. There are also some investors that are having success with Airbnb’s in the midtown area. Check out @pettigrew_adventures on Instagram to see some of her beautiful Memphis Airbnb’s. Feel free to connect with me if you have any other questions. I could go on and on, but didn’t want this to be too wordy. Ha

Lynnette E. · Answer

To house hack, really you will need to know more about what you want in a home, the type of area you want to live in, the job market you may want to work with.

TN has 4 large cities, pretty much one in the northern, one in the southern, one in the eastern and one in the  western part of the state.  And there are numerous small and mid size towns/cities.

You might want to start by googling the 'grand divisions of Tennessee'.  The 3 parts of TN recognized in the state constitution.  The 3 parts of the state are very different by economic development, jobs, geography.  Even the state quarter for TN represents the 3 different music types the 3 areas are known for.

Once you know what you want for your life, then you can match that with an area.

Oriane Brice · Answer

@Hannah Singer haha! Thanks for the response. When I visit there I’ll hit her up. Appreciate it!

Matt Castle · Answer

@Oriane Brice I'm in Knoxville and I work with investors/relocations quite a bit. In your case, don't put so much effort into which is the best city for financial gain, and simply think about which city vibe you like the most. House hacking works pretty much anywhere as long as it's not a dead zone or a declining market.

In Knox area, west Knoxville is growing leaps and bounds. Maryville and Oak Ridge are growing and both have lots of older inventory that can be rehabbed, and with so much new construction, buyers may find a 1950s charmer or 1920s historic home a bargain to what the builders are asking.

Peter Nikic · Answer

Let me know if you ever go to Chattanooga. I've been there 4 or 5 times in past 6 months. Buying investment properties, but I live in NYC.

Oriane Brice · Answer

@Kyle Deutschmann yes I’m good on the city fast life. I’m craving quiet and while still getting a return on my investment. If I have anymore questions I’ll reach out to you. Thank you kindly

Best/preferred city in Tennessee for house hack??

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