Thoughts on Clarksville TN?

Question

Hello All,

I’m looking at Clarksville, TN as a potential market for me to invest. This area seems like a good investment opportunity with a mix of military and various manufacturing jobs. It’s around 45-60 min from Nashville so seems like a good area due to growth. Couple of questions for folks who invest in the area.

1) Do see long term potential in this area? How is the macro economy there?

2) Are there Class A or B areas in Clarksville where you’ll have stable tenants?

3) Any reasons to avoid Clarksville?

Thanks all,

Klint Ruud · Answer

@Allen Wu @Christian Espana @Tony Clark @John Williams @Andrew BilisI could not agree more with what has already been said. Clarksville is a great market to jump into. I heavily lend in Clarksville on investment properties. Many of my clients have been tremendously successful with their flips and rentals. Please feel free to reach out. I would be happy to point you in the right direction!

Andrew Bilis · Answer

In my opinion Clarksville is a great market. Many of the investors I work with are actually buying heavier in Clarksville than they ever have before. The rental market is getting hotter and hotter with each day that goes by. With any up and coming city there will be drawbacks, but there is plenty of potential and money to be made in the Clarksville market.

John Williams · Answer

Hello @Allen Wu I am a Realtor/Investor here in Clarksville, TN!

1. I do see long-term potential in this market. Fort Campbell, the adjacent military base, is a driving force to the local economy. It provides great stability to the market and provides some inherently recession-resistant benefits. Recently, we've seen a lot of interest from out of state that has, without a doubt, helped to drive up prices and competition. Why? Clarksville is still pretty affordable, yet is close enough to Nashville to enjoy some of the benefits of the city (about a 45 minute drive). We do receive a lot of spillover growth from Nashville. With that being said, prices seem to be increasing at a faster rate than rental rates.

2.There are plenty of Class B areas and a decent amount of Class A areas. Local B-Class neighborhoods are my personal favorites for buy-and-holds.

3. While the military base provides a lot of stability to the market, there are some drawbacks. The local economy is fairly reliant on the military base (however, we do have an increasing amount of diversification). One of the reasons that there is an increasing gap in the rent to price ratio is because Soldiers receive a housing allowance (BAH) that is capped (although it can increase). It is difficult to for rental rates to keep up with the immense growth!

It is increasingly difficult to find a deal, but they are certainly still out there ... even on the MLS!

In my opinion, Clarksville has an excellent balance of growth/appreciation and cashflow.

I hope that helps!

-John

Tony Clark · Answer

Hey @Allen Wu Clarksville is a market that has been very hot for especially the past 6 to 8 months. Rental rates have started to increase there slowly and have picked up steam in the last few months as well, and between the military base and Austin Peay University there is a very stable tenant base. I like the market there, have looked at some properties for clients, and have been trying to buy a BRRRR with a partner out there for a little while. It’s a very hot market, but if you can find a deal it’s a great place to invest. A lot of investors in Nashville are starting to look at the surrounding markets (Clarksville, Lebanon, Columbia, Dickson) because of their proximity to nashville but the better returns you can find there.

Happy to answer any other questions you have, feel free to message me!

Christian Espana · Answer

Hi Allen! I have the same questions as I am trying to invest from out of state. I pulled some data from bigger pockets and rent to income is good, but the the average rent was very low just a year ago and still not sure if you can make the number works. Cape Coral has a stronger rental market from the data, but perhaps one is going up and the other peaked.

I will be heading out there and meeting some people; I’ll let you know if I learn anything insightful.

Good luck!

Vivek Khadilkar · Answer

Agree there not much opportunities left in Clarksville now

Allen Wu · Answer

@Klint Ruud

Hi Kline,

After few months of diligence, I’m ready to jump in! Are you still thinking the same that there is opportunity left in Clarksville?

Allen Wu · Answer

@Christian Espana

Thanks! I have a duplex in southeast Cape Coral. Solid area so far and growing! I’d check out the SE or SW as those are more established areas. Appreciate your help in Clarksville

Thoughts on Clarksville TN?

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