6 Hot Markets in Tennessee for Fix and Flip Investment

Tennessee is quickly becoming one of the most attractive states for real estate investors, thanks to its booming economy, diverse markets, and steady population growth. From thriving metropolitan hubs to up-and-coming smaller towns, the state offers a variety of opportunities for real estate investors looking to succeed in the fix-and-flip market.

Whether you’re targeting affordable properties in revitalizing neighborhoods or aiming to capitalize on high demand in rapidly growing cities, Tennessee has a market for every investment strategy.

In this article, we’ll explore six of the hottest fix-and-flip markets across the state. These locations combine affordability, growth potential, and strong housing demand, making them prime opportunities to turn potential into profit.

1. Murfreesboro: a suburban hotspot

Murfreesboro, located southeast of Nashville, is a thriving market with strong appeal for fix-and-flip investors.

The city is going through rapid population growth, driven by its proximity to Nashville and high quality of life. According to Redfin, house prices in October 2024 were up 5% compared with 2023. Properties are also selling slightly quicker than last year (49 days on the market compared to 51 last year) showing that demand has no signs of slowing.

For real estate investors, Murfreesboro offers a balanced mix of affordability and demand. The area’s booming economy, anchored by Middle Tennessee State University and a variety of industries, means that there’s a steady influx of buyers and people seeking rental properties.

The opportunity lies in renovating properties to meet the needs of families and professionals relocating to this vibrant city. There are opportunities for those who want to fix and rent. If that’s a consideration, check out our tips on maximizing the rentability of fixer-uppers.

2. Nashville: the music city

Nashville’s booming economy—driven by healthcare, technology, music, and tourism—makes it a prime location for real estate investment. As well as stability and growth, these industries also bring major employers who then attract professionals.

This has created a strong demand for housing, with median home prices steadily increasing.

For fix-and-flip real estate investors, Nashville offers a range of properties: from affordable homes in up-and-coming neighborhoods to high-end projects in trendy areas like East Nashville. Continuous improvements in transportation and amenities are enhancing the city’s livability.

The city’s vibrant culture and robust job market ensure consistent interest from buyers and renters alike. The cultural appeal of the city’s music industry also makes it a tourist hotspot. While Nashville does have some strict regulations for short-term lets, experienced flippers who don’t mind red tape may want to consider the benefits of investing in an Airbnb Rental.

3. Memphis: a hub of opportunity

Memphis stands out for its affordability and high rental demand. Known for its rich cultural history and strong job market, Memphis attracts a steady stream of tourists and new residents that fuel the rental market.

The city’s affordability is a key draw for real estate investors. With median home prices significantly below the national average, there are lots of opportunities to purchase properties at lower costs.

The local economy is supported by major employers like FedEx, AutoZone, and St. Jude Children’s Research Hospital, ensuring job stability and consistent housing demand.

Neighborhoods like Klondike, South Memphis, and Soulsville USA are undergoing revitalization, so investors can find properties perfect for renovation and flipping.

Additionally, the city’s high rental demand and relatively quick market turnover—averaging 67 days—create excellent conditions for both fix-and-flip projects and buy-and-hold strategies.

4. Chattanooga: The Scenic City

Chattanooga’s transformation over the past decade has made it a popular choice for young professionals moving from cities as diverse as New York, Seattle, and San Francisco. Nestled along the Tennessee River, the city combines natural beauty with a growing economy.

Revitalized downtown areas, and an influx of new businesses, have boosted property values. It’s also attracted young families, driving demand for updated and modernized housing. Here are some tips to increase the value of a fix and flip property to capitalize on this.

Chattanooga is an excellent option for real estate investors due to its remarkable transformation and sustained growth over the past decade. Nestled along the Tennessee River, this “Scenic City” combines stunning natural beauty with a thriving local economy.

Chattanooga’s affordability, coupled with rising property values, offers opportunities for profitable investments, particularly for fix-and-flip projects in neighborhoods close to outdoor attractions and cultural hubs.

The city’s economic stability, bolstered by a mix of new businesses and established industries, ensures consistent interest from buyers and renters, making it a smart choice for both short-term and long-term property investments.

5. Johnson City: a hidden gem

Johnson City is an excellent choice for real estate investors thanks to its steady growth and economic stability. Located in north-eastern Tennessee, it’s an emerging market supported by a diverse economy that includes healthcare, education, and manufacturing.

East Tennessee State University contributes to a strong rental demand, while property values continue to rise. Investors can find plenty of opportunities to fix and flip homes in this charming mid-sized city.

Johnson City has also experienced a population increase over the past decade, driving housing demand and boosting property values. Investors can find attractive opportunities in family-friendly neighborhoods, where renovated homes often yield significant returns due to the area’s growing appeal and affordability.

6. Knoxville: gateway to the smokies

Knoxville offers the perfect blend of urban amenities and small-town charm. The city’s strategic location near the Great Smoky Mountains National Park makes it a popular destination for both residents and tourists.

This dual appeal ensures a steady demand for rental properties and creates opportunities for short-term vacation rentals. Knoxville’s growing economy, driven by sectors like education, healthcare, and manufacturing, contributes to rising property values and a strong housing market.

The city offers a diverse range of investment opportunities, from older homes ripe for renovation to new developments catering to families and young professionals. Affordable property prices compared to other major cities in Tennessee make Knoxville a great choice for first-time house flippers.

Key considerations for house flipping in Tennessee

Before choosing a fix and flip property in Tennessee, you should start by evaluating the city or town that you’re looking at.

Some starting points for your research:

• Market trends: Analyze local data on population growth, housing demand, and property values to identify promising neighborhoods.
• Renovation costs: Ensure renovation expenses align with your budget and target profit margin. Return on Investment (ROI) for a fix-and-flip project typically falls between 10% to 20% after accounting for all expenses, including the cost of purchasing the property, renovation, holding costs, and selling fees.
• Community development: Look for signs of local revitalization projects or businesses moving into the area, as this can boost property values.

When you find a property that looks appealing, you’ll need to take time to work out if it’s really worth it. We’ve pulled together 8 tips to evaluate a property.

Finance your fix and flip in Tennessee

Tennessee offers a wealth of opportunities for real estate investors, with markets ranging from bustling urban centers to charming smaller cities and towns.

Partnering with a hard money lender like Express Capital Financing can be a game-changer for investors pursuing fix-and-flip projects in Tennessee. With tailored financing options, quick approvals, and a deep understanding of the local real estate market, we can help investors acquire properties swiftly and fund necessary rehab costs quickly.

Our expertise ensures you can focus on executing your flipping strategy while benefiting from flexible repayment terms that align with your project’s timeline and ROI goals. Whether you’re targeting emerging markets like Johnson City or revitalization hotspots in Memphis, Express Capital Financing offers the support and resources to turn your investment vision into reality.

Find out more about our fix and flip loans.