Why Do You Invest in Tennessee? (Testimonial for BP!)

Question

BiggerPockets! I work at BP and I'm working on building a landing page for Tennessee and the cities of Chattanooga, Knoxville, and Memphis. Would anyone be willing to share why you choose to invest in any of these cities or the state in general? What makes it so wonderful?

Brian Levredge · Answer

@Lauren Hogan It's way more than that. Yes, cost of living is much less here. People are not a slave to their rent or mortgage payment as they are in SoCal where I'm from. The business environment is much healthier though. As a result of that there are far more opportunities, even when the market is heated up like it is now. Overall the quality of life is much better in Chattanooga. Less traffic, pollution, people, etc.

Philippe Schulligen · Answer

Here are reasons why I love the Memphis market:

1. Memphis is a large stable market: the MSA (metropolitan statistical area) is 1.3 million people. Its population did not change significantly through recessions.2. Employers and industries are diverse: logistics (FedEx, Amazon), healthcare (Baptist Memorial, St Jude), other industries (Technicolor, International Paper). There is not a single primary employer in a single industry.3. Companies are investing: Spending on new downtown Memphis development projects are projected to surpass $2.9 billion in the next several years. Over 250 revitalization projects, valued at $13 billion have been completed in the last few years. FedEx has pledged $1 billion to modernize its Memphis SuperHub. St. Jude’s Children’s Research Hospital has planned a $1 billion downtown expansion. Nike and Amazon recently broke ground or opened distributions centers.4. Landlord friendly laws: termination notice for nonpayment of rent is 14 days.5. Cost per multifamily unit for B/C class asset is affordable due to high cap rates: $30-$50K/unit.6. There are thriving class A neighborhoods: Downtown, Cooper-Young, Overton Square, University District, East Memphis, Crosstown, Germantown. And more quiet residential solid class B neighborhoods like Raleigh and Southeast Memphis.

James Allen · Answer

@Lauren Hogan - I love the investing in the Knoxville market from out of state mainly because I find it right now to be one of the best markets to get a combination of cash flow and appreciation. Lot's of gentrification taking place and millions of dollars being invested into redevelopments of the Downtown North and South Waterfront projects. Rent Growth is doing well, in fact recently ranked #1 in the nation according to Moody Analytics Prelim 2019 Q4 Report. 110 million dollar Airport Renovation and job growth of almost 4% in the last 12 months according to Bureau of Labor Statistics. In addition to that, with the current uncertainty of the market, Knoxville was ranked #5 most recession proof city to invest in based on of how consistent employment has been during the ups and downs of the US Economy in the past.

Matt Castle · Answer

Excellent economic outlook, friendly state for business and jobs are plentiful. Interesting mix of new construction as well as older construction for potential flips. Lots of commercial development in many areas, so plenty of things to occupy us when the day ends.

Disclosure: I'm in Knoxville so I can only speak about Knox and surrounding areas.

Wes Harrington · Answer

To second what @Brian Levredge, Account Closed have said, there are lots of economic engines that have come and continue to come to this area for reasons stated above. We oddly enough moved back from SoCal 3 yrs ago as well bc of the growing infrastructure in the area, affordable housing (when compared to our old backyards - Inland Empire/Orlando), reasonable drive to the MTNs/Beach, ~1-2 hr drive to larger cities/airports, and just frankly the beautiful landscape of the Tennessee valley!  When consider where we are geographically, we are at the center of the southeast triad between the the Nashville, Memphis, and Knoxville markets,...we are the flux capacitor of the South.  The mix of people continues to grow as more out of town businesses/opportunities land here.  The airport here is actively in process for expansion to allow more "single hub" flight connections. VW is building its 2nd massive line here for EV vehicles. Just south of us over the GA border, Commerce GA is cleared for its US based plant to build EV batteries (SK Group, largest Korean battery company for Li-ion's).  Maybe we cant be Silicon valley, but.....EV Valley?!?   EPB (electric power board- electric co) has done a fantastic job with creating one of/if not the best fiber optic networks in the world, the infrastructure for more tech based companies has and continues to be laid here.  Just a few of the reasons we like the area!

Nathaniel Aaron Chaney · Answer

My wife and I moved to Chattanooga two years ago for the same reasons as Brian. We moved for the main reason of being unable to afford to invest in anything in the Bay Area (where we were both natives). Since moving we've been able to buy a personal residence (which we plan to fix and rent out in the next year) plus we just finished our first BRRRR. Yes, we could have done long-distance investing, but the cost of living is so much cheaper here as well as no state income tax makes it so we can live on half my income and save all of my wife's. Even in this hot market, there are plenty of deals left to be had and the city keeps adding jobs and looks to be growing for the foreseeable future.

Brandon Lucy · Answer

As a native, just remember— our conservative values is what has made Tennessee the place that it is! So welcome everyone but please don’t bring the California politics With you as as we welcome you to Tennessee. We have to keep our state income tax free.

Account Closed · Answer

Chattanooga is in the midst of a decades-long restoration, lead by the City itself. Easy access to bigger markets like Nashville, Atlanta, Charlotte, etc. without the big city headaches. You can be on the slopes or on the beach in a half-days drive. Tennessee as a whole is a logistics hub (ex. FedEx in Memphis) due to it's location and infrastructure, which should continue to create value for the state long-term.

**Moved from Austin, TX in 2019**

Brian Levredge · Answer

Happy to discuss about Chattanooga.  Moved here from Los Angeles seven plus years ago.  It's been a tremendous opportunity.

Jasmine Morris · Answer

I was transferred to Knoxville for work with every intention of leaving after my assignment ended, but I quickly decided that it is where I wanted to stay.  There is no state income tax, so I felt like I got a raise, and I could live more inexpensively than the area I left. There are always interesting people moving here because of the university, the hospitals, the lab and nuclear facilities in Oak Ridge, a Scripts TV network, etc.   Also, the Great Smoky Mountains are really close, but not so close that the tourism completely taints the city.

My husband and I are planning to invest in short term rentals in the Smokies. It is an established market with reasonably priced investment properties.

The reasons I'm investing in East Tennessee are many of the same reasons I decided to live here.

Why Do You Invest in Tennessee? (Testimonial for BP!)

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