Lesson 1 of 10

Tennessee Market Overview

Why Tennessee is one of the most investor-friendly states in the country.

The Tennessee Advantage

Zero state income tax, explosive growth in Nashville, high cash flow in Memphis, and landlord-friendly laws make Tennessee a top destination for real estate investors nationwide.

Tennessee Market Snapshot

$425K
Nashville Median
$185K
Memphis Median
0%
State Income Tax
9.5%
Memphis Cap Rate

Tennessee's Three Metros

Nashville - Appreciation Play

Hot market, tech jobs, healthcare giants. Prices have doubled since 2015. Higher entry but strong exit opportunities.

$425K
Median
5.5%
Cap Rate
Flipper
Best Buyer

Memphis - Cash Flow King

Affordable entry, highest cap rates in the state. Strong Section 8 demand. FedEx HQ provides stable employment base.

$185K
Median
9.5%
Cap Rate
Landlord
Best Buyer

Knoxville - Hybrid Market

University town (UT), growing tech scene, Smoky Mountain tourism. Balanced appreciation and cash flow.

$295K
Median
7.2%
Cap Rate
Both
Best Buyer

Why Investors Love Tennessee

No State Income Tax

Keep more of your profits

Landlord-Friendly Laws

Faster eviction process than most states

Strong Job Growth

Amazon, Oracle, FedEx expansions

Low Cost of Living

Attracts relocators from expensive states

High Rental Demand

30%+ of residents are renters

Diverse Exit Strategies

Flippers, landlords, turnkey buyers

Pro Tips for Tennessee

  • 1. Nashville = sell to flippers. Memphis = sell to landlords. Know your buyer before you buy.
  • 2. Memphis has more "rough" areas than SA. ZIP code knowledge is critical - drive neighborhoods before offering.
  • 3. Nashville suburbs (Murfreesboro, Franklin) often better deals than core - less competition.
  • 4. TN has a 2-year redemption period on some foreclosures - verify before offering on any foreclosure-related lead.

Key Takeaway

Tennessee gives you two completely different strategies: Nashville for appreciation and flipper buyers, Memphis for cash flow and landlord buyers. Master both markets to maximize your deal flow and assignment fees.