In 2021, the real estate market was en fuego nationwide. It was and probably will be the easiest time EVER to make a quick buck…It got to the point where you could just about throw a dart at a home anywhere in the nation and you would make a profit flipping that home.
Similar to a house party that a teenager throws when the parents are out of town, it started off small and everyone was having a good time…Until word spread and all of the wrong type of people started to show up (Wall Street money) and then things went to a completely different level of crazy to the point where nobody had control, the valuables were all being stolen, nobody could calm down the drunk kids and eventually the cops (FED) had to be called in to shut down the party.
It would have been nice had they been there the entire time but alas the history of government oversight is always a day (or 500 days) late to the party and by the time they do show up it’s a mess.
So, 2022 they shut the music off and now everyone is stuck with home prices that will not come down anytime soon but at least they stopped going up along with rent increases…With the exception of a few markets…
One of those markets just so happens to be where I now live & buy properties for investors like you.
Tennessee & Georgia are unique.
I found this out for myself in 2022 out in Phoenix especially when the party had just been shut down by Mr. Powell and you could no longer find those iBuyers and hedge fund managers that seemed to have limitless funds to buy homes. It turned into a ghost town overnight. Not a single flipper or buyer could be found for a year or more.
Contrast that somber mood in the West Coast with the market in Chattanooga…Nobody bothered to tell them the party was over!
I would fly out once a month and spend 4-5 days here and everywhere I looked there were buyers making multiple offers. Rentals were appreciating year after year…And prices continued to increase. The rate may have slowed down a little bit but for some reason, they did not receive the memo. They clearly like to party out here.
In 2021 I realized you could no longer find a long-term rental property in Arizona that could cash flow…Unless you were ok with a 3-4% return (which many were at the time). Sure they would have equity but you could not cash flow EVEN at 4% interest rates. That was a major problem. I am so glad that I spent that time while things were good to find a market that not only would appreciate but would also cash flow at 6,7, or 8% interest rates.
This market has continued to grow and appreciate and it is one of the few remaining markets that is incredibly healthy and built for sustained growth in the single-family rental space.
I compiled the top ten reasons why the greater Chattanooga, TN market is one of the safest places to invest in real estate today.
- For every 100 people that move away, 300 move in.
- Lower cost of living. 10.2% lower than National Average
- No state income tax
- Landlord laws are very favorable to property owners. In other words, the liberal population is still small enough that they haven’t ruined all of the common sense policies.
- Business friendly environment. Several Amazon warehouses, VW electric vehicles main manufacturing facility is here, Shaw carpet. Home Depot and Coca-Cola are also headquartered in Atlanta 90 miles down the road.
- Centrally located between Nashville, Atlanta, Birmingham, Knoxville. All within a 2-hour drive.
- Top 3 destinations for retirees
- Subtropical climate is amazing. Mild weather year-round.
- Median home price avg in the areas we buy is $300,000. The national average is $420,000.
- Rents GREW 7% in 2023 for single-family housing! According to rent.com rents went up by .02% Nationwide. (Most of the West Coast saw double-digit declines).
If you look at what occurred in 2008 with the housing crash…Some market faired much better than others. Anyone from Tennessee will tell you that while the majority of the country suffered major declines in home prices, Tennessee was on the lower end of those declines. Overall it tends to stay much more stable and towards the middle of the pack due to the reasons mentioned above.
2023 has been an incredible year to invest in turnkey rental properties with Property Rush, and 2024 is poised to be just as good (most likely lower interest rates the second half of 2024 with a higher price point as the market continues to appreciate with the demand and low supply).
PS…The party is still going strong out here…
But it remains an invitation-only event.