Starting out with real estate investing in Knoxville

[Adelaide Wolcott]

Hello! I will be graduating college this upcoming year and moving to Knoxville in summer of 2021. I've been itching to begin my real estate investing to start learning through experience how to make stable passive income. Just a little bit about my financial situation- I have some college debt around 25k, a payed off car, around 10k saved, and a few investment vehicles started like some real estate crowdfunding (AHP) and MC Laubscher's(The Cash Flow Ninja)  whole life insurance policy used for infinite banking. Salary wise I will be graduating with a job from an area that pays a lot higher than average Knoxville salaries and working remotely from home. My boyfriend will also be moving with me and in the same financial situation except no investments yet and a second loan for a car. 

I have a plan started of which investments I want to start working on but don't know where to begin! I was thinking of buying a single family home and using BRRR as my strategy. I would think I should buy a home on the cheaper side of what I could afford to be conservative with money and lower my expenses and living below my means starting out. Maybe find a home in the 150-250k range then after living in it a year and renovating, rent it out and refinance to use for a downpayment for a second single family and start down that path. Not sure which areas to look in specifically based on schools or higher rent rates and occupancy rates. Maybe long term invest in some student housing or apartments right in downtown knox? Looking for advice or connections with anyone interested! Id love to take anyone in the area to lunch (my treat) to learn more so I can spend this next year preparing for my move!

[Christopher B.]

South Knoxville is were the young professionals, such yourself, are moving. As Jacob mentioned there are a lot of attractive things about this area (Ijams and the Urban Wilderness, 5mins from downtown, breweries, near UT for gamedays, larger lots, county taxes potentially, etc, etc). "SoKno" now also fetches some of the highest $/sf in Knoxville. Rivaling even our old money luxury neighborhood, Sequoyah Hills. So you'll need to stay in the small square footage to stay around $150k (think 700-1000sf rehabbed) but there is opportunity to buy houses that need work. Those small houses make great rentals and you should see strong appreciation and rent growth there to boot. 

SFR's are great, the most secure real estate asset to own imo. Consider a 2-4 unit as well though and live free from day 1. They are harder to find anymore but I got started with a duplex myself and it was a huge boon for my career and today is a cow. Real estate is about the long game, think 2-3 steps ahead with each decision, focus on the end goal, and you'll get where you want to be.

Feel free to reach out with any Q's about Knoxville or investing. Welcome.