Since I write the occasional blog on how to turn flipping houses into a good business and have been investing in my home state of Tennessee for years, I get a fair number of questions from new investors. Sometimes, they want more details about how to get started. Most of the time, they want to know where it is they should be flipping houses here in Tennessee. I always give them my current take on which places provide the best potential upside. But, as an old investing dog who likes to stick his nose where he thinks it belongs, I tend to tell them the best way to get started as well. And, if you don’t mind my being a little nosey, I’ll do the same for you.
Start Flipping Tennessee Houses in These Three Cities
This great state has changed in so many ways over the years that it’s enough to make your head spin. If you’ve made a living flipping houses in Tennessee like I have, it’s my hope that your head—and your bank account—have spun in the direction of decent profits. After all, more people live here now than ever before and more of those people own homes than not. In fact, we’ve got a homeownership rate creeping up on 67%, according to the U.S. Census Bureau.
And, I certainly expect that number to keep rising as the population keeps growing. With the media reporting that a million more people are expected to reside in the Middle Tennessee region alone in the next 20 years, it’s a good assumption that the demand for housing is gonna get a bump, too. Since increased demand often equates to an upward shift in median home selling prices, my age-old “told you so” attitude as a Tennessee investor is flying high as well.
If you’re just now coming around to the idea of flipping houses in Tennessee and want to get into real estate investing here as soon as possible, I say go for it. Median home values are already on the upswing and have been for several years running. The next year or two are expected to be no different. So, get in now while the gettin’s good. Then, stick around since, if you know where to invest and how to do it well, it can only get better.
To get you started, here are my three favorite Tennessee hot spots where you’re bound to get the most bang for your buck:
There are probably more reasons than I can list here for why you’ll want to start flipping houses in Nashville. To start, Music City, U.S.A. is home to the best job market in the country, according to the Wall Street Journal. It won the top slot by having the highest rate of annual job growth in most major industries and one of the lowest unemployment rates across the board. Wages are up as well. And, when people are able to find great jobs that pay a good salary, the next item on their to-do list is often to find a new house.
With once gang-ridden haunts like old Germantown transitioning into family-friendly neighborhoods with a lively vibe, these home shoppers have more options. Though median home sales prices in these areas aren’t shooting through the roof like they were last year, they’re still steadily on the rise. As long as you can find motivated sellers of fixer-uppers in other up-and-coming Nashville neighborhoods, your returns will likely be on the rise, too.
Chattanooga may be just a fraction of the size of Nashville, but there are plenty of big reasons why you may want to invest there. Since quietly transforming into one of the south’s major tech hubs in the last few years, several news outlets have started calling Chattanooga one of the best cities to build your business. And, both new startups and long-established corporations listened.
In fact, by the end of 2018, several billion dollars had been invested in Chattanooga in less than ten years by companies like Volkswagen and Amazon. With the expansion of jobs came a boost in population. Even with more people around, the unemployment rate just keeps dropping down. And, currently at 3.3%, per the Bureau of Labor Statistics, it’s lower than the national average.
What isn’t dropping is the median home sales price. It’s up to $236,000 from $169,000 a year ago. That shouldn’t come as a surprise, however. After all, the demand to live and work in Chattanooga is hot. So, if you have a way to find investment properties to flip in this little city, you might also find you’ve hit the big time.
How much money you can make flipping houses in Knoxville will, ultimately, depend on a variety of factors, but this great location is a good place to start. Like the other Tennessee hot spots on my list, unemployment is low and job growth is high—especially in the revitalized downtown area. And, that makes for both a stable economy and a healthy desire to own a home.
The desire for housing is so strong, in fact, that when houses hit the market, they’re bought up pretty fast—and for close to full asking price, too. Median home sales prices have more than tripled from just a year ago and that’s taking into account that they’ve leveled off since spiking last fall. Provided you successfully buy homes at below-market value and stay well within budget when performing repairs, you may see some extra padding in your wallet.
Of course, when it comes to ensuring ROI, the right location will only get you so far. In fact, it’s finding real estate deals no matter where or when you invest that’s gonna make the biggest difference to your bottom line. Since there are Tennessee towns, both large and small, that have great opportunities for realizing potentially decent returns, the deal itself is where your focus should be. And, when you’ve got the resources handy to keep your deal-finding focus on track, the best place for flipping houses in Tennessee could be right where you are.
The Best Resources for Realizing A Better Potential Upside
So, where do you find the best resources to ensure a better potential upside when flipping houses in Tennessee? With the only real estate investment franchise that’s helped franchised investors in 46 states buy more than 95,000 houses since 1996: HomeVestors®.
As a successful independently owned and operated HomeVestors® franchisee myself, I know first-hand how effective the lead-generating marketing tools, like the nationally-known “We Buy Ugly Houses®” ad campaign can be. Not only do qualified leads on fixer-uppers come straight to me because of the trust built around the HomeVestors® brand, but they also come knowing I’m going to treat them right. And, a great relationship from the get-go makes for a very good deal indeed.
Get access to some of the best deals wherever you’re flipping houses in Tennessee. Call HomeVestors today to learn more about the available resources that will help you do it.
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