Knoxville vs. Indianapolis

[William Vreeland]

I'm planning to BRRRR single-family homes, but I can't decide between Knoxville and Indianapolis. I live in Southern California, have family in Tennessee (Nashville), and real estate friends in Indianapolis. I will be purchasing the properties in cash, likely from mortgage or tax deed/lien auction. Looking to connect with local investors in each market and discuss the pros/cons. Thoughts?

[Cory King]

Happy to chat about Knoxville. I have a buddy locally from Indy who's wholesaling up there. I can help connect you. I'm an investor here. The BRRRR method is tricky here as we've had some of the highest appreciation in the US over the last 5 years. It's not impossible to find, but you may not recover ALL your cash in the refi and may have to wait an added 1-2 years to get it all out.

I had a historic property that I put around $110k into it (all in $290k). It first appraised for $330k which I challenged as I had better comps, but it's rare to win one. I could only refi $245k at the time. In process of doing a cash out refi on it now, 1 year later, and it appraised for $400k so I'm recouping my cash now and will build on the lot next door starting next year.