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Lesson 2 of 10

Nashville vs Memphis vs Knoxville

Three metros, three strategies - know which market fits which buyer.

Quick Comparison

Factor Nashville Memphis Knoxville
Median Price $425K $185K $320K
Avg Cap Rate 5.5% 9.5% 6.5%
Primary Buyer Flipper Landlord Hybrid
Competition High Medium Low
MAO % 65-68% 72-75% 68-70%
Best For Appreciation Cash Flow Balanced

Nashville: The Appreciation Play

Music City is HOT. Prices have skyrocketed, making it a flipper's market with tighter margins.

Target Buyer: Flippers
Target ARV: $350-550K
Assignment Fee: $12-20K
Days on Market: 18-25

Memphis: The Cash Flow King

Lower prices, higher cap rates - Memphis is landlord heaven. Out-of-state investors love it.

Target Buyer: Landlords
Target ARV: $140-220K
Assignment Fee: $8-12K
Cap Rate: 8-10%+

Knoxville: The Hidden Gem

Less competition, university town, solid fundamentals. Good for both strategies.

Target Buyer: Mixed
Target ARV: $250-400K
Assignment Fee: $10-15K
Cap Rate: 6-7.5%

Key Takeaway

Nashville = appreciation/flippers (use 65-68%). Memphis = cash flow/landlords (use 72-75%). Knoxville = balanced approach (use 68-70%). Match your deals to the right buyer pool.