Learning the market in Knoxville, Tennessee

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Learning the market in Knoxville, Tennessee

Matt Little
Investor · Knoxville, TN · Member since 2016 · 9 posts · 3 votes

Hi all - I've been learning all I can by looking at houses most weekends, reading books,and listening to podcasts for a few months now and am looking to do my first deal in 2016. I signed up for BP because I realize there is a lot I can learn from other's experience that will take much longer to learn from books. I am focusing on learning the North Knoxville market. I've made a couple of offers and gotten outbid but I’m sticking to my numbers and being patient since my goal is to do just one transaction this year. I don't have that much money to work with yet so I’m planning to do my first deal with 20-25K in cash. I'm open to a single family home (flip or rent depending on the individual deal) or a duplex.

I'm an accountant so the main strengths I bring to the table are budgeting and analyzing. I'm good at making presentations also. I would be happy to lend those strengths to an experienced investor in exchange for you teaching me some other aspects of the business.

Anyone who would like to network or share some advice please feel free!

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Christopher B.
Rental Property Investor · Knoxville, TN · Member since 2011 · 701 posts · 531 votes
10y

You do monthly bookkeeping? I like to barter and I hate bookkeeping, it's why I chose finance over accounting in school. North Knox is a good area, I personally live in Fountain City. What exactly are you looking to do with your $25k? Invest in a deal with someone, use it with other financing to acquire and renovate? 

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  • Christopher B.
    Rental Property Investor · Knoxville, TN · Member since 2011 · 701 posts · 531 votes
    10y

    You do monthly bookkeeping? I like to barter and I hate bookkeeping, it's why I chose finance over accounting in school. North Knox is a good area, I personally live in Fountain City. What exactly are you looking to do with your $25k? Invest in a deal with someone, use it with other financing to acquire and renovate? 

    1Reply
  • Matt Little
    OP
    Investor · Knoxville, TN · Member since 2016 · 9 posts · 3 votes
    10y

    I have always done accounting for big corporations although I'm sure doing it for a real estate operation shouldn't be too hard. I wouldn't mind learning it.  Just seeing your books would probably be a learning experience for me. I'm planning to use financing for the rest. I've been mostly looking at single family homes under 60k for my first. 

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  • John Santero
    Investor · Chattanooga, TN · Member since 2012 · 227 posts · 114 votes
    10y

    the knoxville REIA is on of the best and informative REIA's around. check them out. Tell Victor there I said hello!

    1Reply
  • Gino BarbaroPro Member
    Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
    10y

    @Matt Little

    hi Matt

    great market.  Real estate is all about the numbers.

    Good Luck

    Gino

    Podcast Guest on Show The “Conveyor Belt” System That’ll Build You a BIG Rental Portfolio Quickly
    0Reply
  • Carrie Carlton
    Investor · Nashville, TN · Member since 2016 · 88 posts · 66 votes
    10y

    Hey I bought a SFH in North Knoxville in 2008. Height of the market, cringe. I went to graduate school there and lived there until 2011. I moved back to Nashville and have had the house ever since because I could never break even. I hope you Knoxvillians are predicting an up turn in North Knoxville real estate.

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  • Christopher B.
    Rental Property Investor · Knoxville, TN · Member since 2011 · 701 posts · 531 votes
    10y

    North is a desirable area for young professionals. Get more bang for your buck and very convenient. Just depends on where you bought the house. 

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  • Gino BarbaroPro Member
    Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
    10y

    @Matt Little

    Hi Matt

    Great market.  I live in NY but am investing in Knoxville.  PM me if you have any questions about the market

    Gino

    Podcast Guest on Show The “Conveyor Belt” System That’ll Build You a BIG Rental Portfolio Quickly
    0Reply
  • Matt Little
    OP
    Investor · Knoxville, TN · Member since 2016 · 9 posts · 3 votes
    10y

    Thanks for the responses everyone.

    Carrie -Sorry to hear about your Knoxville real estate experience.  Have you been renting it and at least getting some cash flow while you wait for the appreciation?  I would think at current interest rates it could at least be paying for itself even if the market value is lower.  

    Christopher - I agree about north Knoxville being a great area.  I wouldn't recommend it unless you live here or are from here though.  One street is a great up and coming area and the next street over is the hood. I'm just trying to learn as much as I can right now so i'd love to hear your story sometime and possibly come to a bookkeeping arrangement if you can find something to barter!  

    I had one offer rejected last week and should find out today about another property I offered on.  It is all pretty exciting for a newbie lol.  Wish me luck BP!

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  • Paul Timmins
    Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    10y

    @Matt Little

    Go to IREM.org search for ARM certified property managers. Call 5 ask them what they see expenses running per category per unit. What do they see them selling for per unit, what is the market occupancy rate. What are the market rents? Ask them if they know anything coming up for sale. Great way to pick up some good info and possibly a deal.

    You can also search NARPM.org for the RMP (Residential Management Professional) and MPM (Master Property Manager) certified.

    Paul

    1Reply
  • Christopher B.
    Rental Property Investor · Knoxville, TN · Member since 2011 · 701 posts · 531 votes
    10y

    @Matt Little I agree with your assessment on North Knoxville, it is very hit or miss and you can get yourself in trouble quick if you don't know the area. Feel free to pm me, we'll talk turkey.

    I still get excited when I make offers on houses

    0Reply
  • Victor Jernigan
    Investor · Knoxville, TN · Member since 2011 · 205 posts · 91 votes
    10y

    @Matt Little North Knoxville is a big area. Focus on specific areas and neighborhoods. For example Ft City as an area and Harrell Hills as the neighborhood. The Inskip area should be considered in relation to the specific roads Cedar Lane and Inskip Rd - for example a property south of Cedar Ln but west of Inskip is definitely different from a property east of Inskip. You should contact @Christopher B. and @Payton Abernathy. Chris knows houses and zonings. Payton is finishing his first flip. Also you should come to the KnoxREIA meeting on April 12. The topic is The Future of Affordable Housing. It will be a great opportunity to network. If @Carrie Carlton will send you the address and rental income of his property - bring it to the meeting it may be your first partnership or contract assignment.

    Happy Investing.

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  • Alan Duff
    Investor · Knoxville, TN · Member since 2016 · 12 posts · 3 votes
    10y

    I live in West Knoxville but am looking to invest in North Knoxville. What do you guys who know the area think about the neighborhood surrounded by Broadway and Jacksboro Pike. Looks like a solid blue collar area with mostly small but well cared for homes.

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  • Victor Jernigan
    Investor · Knoxville, TN · Member since 2011 · 205 posts · 91 votes
    10y

    @alanduff

    That is Harrell Hills -  Harrell Hills is what the Forest Brook / Park Glen neighborhood (between Northshore and Westland 37919) looked like 15 years ago. Now Forest Brook is the most expensive housing per sq ft in East TN. Since you are in West Knoxville you should drive to Glen Brook Rd and see the similarities to the basic houses in Harrell Hills. Exactly as with Forest Brook the new residents of Harrell Hills are keeping the "existing core" of the 1950's and 60's house and doing renovations which cost more than they paid for the home.  

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  • Christopher B.
    Rental Property Investor · Knoxville, TN · Member since 2011 · 701 posts · 531 votes
    10y

    Victor is spot on. We've done houses in Fairmount, Holston Hills, Inskip, and pleasant ridge of North Knoxville. Each of the houses had different strategies for different buyers and you can go 1-2 streets over and be in the wrong pocket. So you have to be considerate of that as well as the type of remodel that is expected and can be supported by the area. 

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  • Richard Gamble
    knoxville, TN · Member since 2015 · 1 post · 0 votes
    10y

    @Alan Duff that part of Fountain city (Harrell hills) as Victor called out is fantastic for flips or buy and hold. As an investor I work mostly in East and North Knox and have lived in North Knox on and off for the last 20 years. If you would like to, send me a PM and we can discuss the details and areas of North Knox or we can do so at the upcoming Knox REIA meeting that Victor mentioned if you plan on attending. Let me know I would be happy to help!

    @Matt Little the same offer to you send me a PM and we can discuss the details of North Knox or find me at the REIA meeting.

    Additionally I would be happy to meet up with either of you and drive some of the neighborhoods, etc.. to help you get a feeling for North Knoxville. 

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  • Payton Abernathy
    Investor · Knoxville, TN · Member since 2015 · 38 posts · 12 votes
    10y
    Thanks Victor Jernigan , my first flip was in west Knoxville ( west Farragut ). I live in North Knoxville and see many potential deals all around. KnoxREIA is a great place to meet several successful investors. Many are willing to share detailed information and offer great advise. I'm looking forward to my next one soon.
    0Reply
  • Matt Little
    OP
    Investor · Knoxville, TN · Member since 2016 · 9 posts · 3 votes
    10y

    @Victor Jernigan Thanks for the info and invite. I will definitely attend a REIA meeting sometime but unfortunately I have a prior commitment on this Tuesday night. I wouldn't say i'm really looking at all of North Knoxville but I do have a pretty wide net in this area. I have lived in north Knoxville my entire life. I'm also trying to see as many houses in my price range and follow the story of what happens to as many of them as possible to accelerate my learning.

    @Richard Gamble and everyone else.  What areas of North Knoxville do you specifically run away from? (primarily from a rental perspective)

    @Payton Abernathy Care to share your first slip story or have you already somewhere you could link me to?

    I'd be happy to set up time to connect with any of you or I will see you at a future REIA meeting.

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