All Forum Posts by: Cory King

• East Tennessee home sales in August saw a healthy 2.1% increase over July, and a 7.4% increase over August 2024.
• The median sale price was $376,200 — up 3% from the previous year.
• Total housing inventory has increased 31.4% from the previous year.
• Half of the homes sold were under contract in 28 days or less, up from 20 days a year ago.
• 39% of homes sold for the asking price or above, with 18.3% selling for more than the asking price. 7.9% sold for at least $10,000 over asking and 2.7% sold for at least $25,000 over asking price.
• 5.5% of all homes sold in August sold for more than $1 million, a new high mark for the year.
• The sale-to-list price ratio lowered slightly to 98.6%, still up from 97.6% a year ago.
• New construction was 11.9% of total home sales.
  
  August sales saw a boost over July, outperforming the prior year and bringing the year-to-date total up by nearly 4%. While a slight August increase is a seasonally expected trend, last month's sales also benefitted from lending rate optimism and an increase in applications as 30-year fixed mortgage rates eased to mid-6%. However, all the conversation about mortgages has also made some buyers continue to hold out in hopes of a rate miracle.
  
  Buyers are more selective than ever, wanting extra amenities in exchange for today's high market prices. The sale-to-list ratio has dropped slightly, and overall days on market continues to tick up each month. Buyers push back on small tradeoffs, say no to DIY work and want extra perks for their dollars.
  
  It's not yet a "buyer's market," but the increased inventory available and skittish buyers means that a good pricing strategy is more important than ever. 39% of homes sold for asking price or above in August, the lowest percentage since the surge began in early 2021. Historically, an average of 28-30% in recent years would have been considered normal. This is just one of the indicators we have seen in 2025 that shows the East Tennessee market is stabilizing, while still growing.

Hey @Colton Porter first off welcome to the wild world of real estate investing! First thing I'd say really get clear on your buy box. I see the single family and multi family, but really get clear on where. Which zip code or general area do you want to buy in. Everyone wants a good deal, but how do you know what a good deal looks like if you don't know what you're looking at. If you know the area info cold you can move quickly. For Knoxville as example, I like 37921 and 37912 zip codes the most and it's where most of my portfolio lives. Why? Bc it's a good mix of old stuff near downtown that I get my fix for classic homes for and rent to students at UT and then as you go out into the burbs it's old middle class stuff. 1970s-1990s era homes. Not too old and growing areas I won't mind holding for the next few decades. My most recent pick up I bought on the MLS day 1 for 20% off the listing price because I knew what I had and could move before anyone else could. Should be a $60k flip or we can always BRRRR. From there check out some local meetups and start making connections. Work on forming a "dream team" so to speak, happy to make some connections in this area. No one succeeds alone.

In 2022 we took on a historic home near downtown Knoxville. We paid $170,000 for it. After inspections and due diligence we anticipated around $50k in rehab and about 4-5 months of time to turn over with an ARV (after repair value) around $325,000. Solid deal. Using a hard money loan to cover the purchase and rehab costs.

The inspection revealed some termite damage to about 2 floor joists that we could see and the rest of the place was seemingly surface level with the bathrooms and kitchens needing the most work. As we started peeling back the layers in those areas more termite damage showed itself. Joist after joist, stud after stud were basically turning to powder. In total 14 joists, countless studs, 1 girder, and new footers had to be replaced. In order to access the floor joists the floor itself had to come up. The home has these lovely caramel colored heart pine floors and removing them was the craziest game of operation I've ever played as to not damage them and fit back together. 

As the work and time started to add up the numbers were getting squeezed more and more. In total we'd invested $120,000 into the project and it took us 11 months to complete. Thankfully our lender was pretty flexible as we hit our 6 month deadline and were still short $60k in cash needed to complete the project. We paid an extra 2 points at refinance and got an extension for the deal for an added 4 months. I spent a lot of time hustling my *** off to generate the extra cash needed bc we didn't have it in reserves to just write the check. 

As we finished it up I was able to recoup a majority but not all of my invested cash, leaving about $40k in the deal. Prior to purchasing in 2022 when rates were rapidly rising, thankfully I did underwrite this deal at upwards of $100k in costs and 9% interest and it still penciled out. Glad I did bc that's pretty much were I ended up. First cash out refi resulted at a rate at 9.2%. Payment was $2400/mo and leased to students at $3200/mo 

We refinanced in 2024 at a much better rate, mid 7s.

As of now our note is $2300/mo and the property generates $3550/mo gross income renting to students at University of Tennessee. We also recently completed a cost segregation study to accelerate some depreciation and save on taxes which has now helped us get back the cash we'd originally left in the project. 

@Czar Wiley we're in Knoxville. It's been a solid market for sure, and depending on your expectations and risk tolerance still one that offers opportunities. Happy to make some local connections for you. 

Hey @Lori Colwick completely understand the frustration. We're in knoxville and have still been able to find opportunities that work for us. Out of curiosity, what sources are you using to find opportunities?

How many offers are you submitting currently? 

Are you open to alternative strategies like Mid term rentals or student rentals? 

We've been able to find returns around 20% over market rent by shifting to mid term and student rentals can be as much or more. We average $930 per month per bedroom for our student rentals. 

If you're looking outside Knoxville markets like Jefferson City and Oak Ridge are worth exploring some as they can offer some decent returns. 

Overall, just keep going

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $330,000
Cash invested: $30,000
Sale price: $445,000

Light renovation project picked up through a wholesaler in the area. They had a hard time doing the dispo so I picked it up pretty much where they had it at. Updated in about 30 days and reposted back on the market. Updates included refinishing floors, paint, clean carpets, landscaping, electric panel and h2o heater replacement. used private capital for purchase and rehab. split profit 50/50. would've worked as a BRRRR also. opted to flip.

What made you interested in investing in this type of deal?

Quick turnover

How did you find this deal and how did you negotiate it?

Wholesaler brought it to me after they had a hard time doing the dispo

How did you finance this deal?

Private Capital

How did you add value to the deal?

Surface level updates mostly. Paint, refinish floors, fixtures/lighting, landscaping, replace electric panel, replace h2o heater.

What was the outcome?

Sold 4 days on market for full price

Lessons learned? Challenges?

pretty smooth overall. some permit challenges drug timing out a little longer than planned

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

self represented as agent. Approach Lending is a great south east region capital partner.

@Stanley Yeldell this can definitely be a tough conversation. When I've done this it's with ample notice. 6 months out, that way they have time to adjust and prepare. Depending on the condition of the property, doing a big jump may also require a significant amount of updating to bring something up to meet market value. If they're good tenants and you're patient a slow increase over time can also be efficient. I'm also a fan of lease options contracts. If your tenants have been solid, and you're open to it you could consider this strategy which can infuse capital up front and defer expenses to the tenants directly. Lots of options, curious which direction you'll end up going. 

@Britt Hennings LFG!!! solid win, that's my magic criteria as well. base hits win championships. enough of em will put you in the hall of fame

 Hey @John Russo Are you looking in Waco or here in Knoxville? 

Data Deep Dive: How's the market?

What's the outlook for the rest of 2025?

If trends stay on track, we’ll likely see modest growth—maybe around 4.1%

Here’s the wildcard: mortgage rates. If rates drop to 6.5% or lower, it could fire up the fall market as any downward adjustment would unlock affordability for many.

The real issue? Inventory mismatch. Most listings are over $250K—but most buyers can’t afford that. In fact, 85% of active listings are out of reach for the average household income. The average new construction home? $448,703.

The bulk of listings continue to lean toward larger, higher-priced homes, while demand is strongest in the more affordable range.

Bottom line: there’s momentum building, but we’ve still got a mismatch between what buyers want and what’s available.

ETN Realtors put out an awesome housing report which can be found HERE

I took some time to dive into it and summarized below if it's not your idea of a fun read.

2025 Housing Snapshot – East Tennessee  

1. We’re seeing signs of a market that's slowly finding balance. After a couple of years of price spikes and inventory shortages, things are settling down. Prices are still climbing, but not at the pace we saw during the boom. That’s giving buyers and sellers a little more breathing room. 

2. Inventory is finally back to pre-pandemic levels. We’re not where we need to be yet—especially with 50,000 new residents added since 2020—but the worst of the shortage may be behind us. Still, we’re playing catch-up after more than a decade of under building. 

3.East Tennessee’s economy is holding strong. Job growth is steady, unemployment is low, and the area continues to attract new residents and businesses. It’s a big reason why our housing market has stayed more stable than others around the country. 

4. Housing demand remains high, but buyers are cautious. Higher mortgage rates, affordability concerns, and overall economic uncertainty are keeping some buyers on the sidelines. But the demand is there—just waiting for the right mix of price and payment. 

5. Affordability is a major issue. The Housing Affordability Index hit a 40-year low in 2024. For a family making the median income of $70K, only about 15% of active listings are affordable. To afford half of the homes for sale, a household would need to earn $136K or more. 

6. We’ve got an inventory mismatch. Most of the homes for sale are priced out of reach for the average buyer. The biggest demand is for smaller, entry-level homes—but what’s being built is bigger and more expensive. That’s not a sustainable long-term model. 

7. New construction is picking up, but not fast enough. Builders have been adding homes, but the pace still falls short of population growth. Multifamily builds have helped, but even with apartment occupancy near 97%, demand is outpacing supply. 

8. Investor activity has cooled. Big institutional buyers that flooded the market in 2021–2022 have pulled back. In 2024, investor purchases made up just under 9% of home sales, down from 14% at the peak. That’s helped ease competition a bit for regular buyers. 

9. The rental market is still tight. Rents jumped 62% since 2020. Even though construction added thousands of new apartments, occupancy is still high and rent growth is expected to continue—just at a slower pace. 

10. Mortgage rates are driving market behavior. The "lock-in effect"—where homeowners don’t want to give up their low rates—has kept inventory tight. But that’s easing as life changes push more people to move anyway. 

11. Demographics are shifting. Knoxville’s population is aging fast. People 65+ are the fastest-growing group, and workforce participation is declining. At the same time, millennials are entering their peak buying years, which adds more pressure to the housing supply. 

12. The long game is about building the right kind of housing. We need smart growth—more small, affordable homes in walkable communities. That means policy changes, zoning updates, and support for builders willing to meet real buyer needs.