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Unlocking Investment Potential: A Guide to Rental Properties in Tennessee
Written by:
Jeremy Werden
June 2, 2024
⚡️
Reveal your property’s rental profitability
Buy this property and list it on Airbnb.
Introduction
Investing in rental properties can be a lucrative endeavor, but it requires careful consideration and strategic planning. A good rental property is characterized by its ability to attract and retain tenants while providing a healthy return on investment (ROI). Key factors to consider include the location, property condition, rental demand, and potential for appreciation. Among these, location plays a pivotal role, influencing convenience, amenities, and overall desirability.
Tennessee, with its vibrant cities, scenic beauty, and economic opportunities, offers a diverse range of investment opportunities. This guide provides an overview of some of the best neighborhoods across Tennessee, evaluating each area on various factors to help you make an informed decision.
Best Neighborhoods for Rental Properties in Tennessee
1. Nashville - East Nashville
Grades:
- Convenience: A
- Tourist Attractions: B+
- Things to Do: A
- Average Home Prices: B-
- Return on Investment: A-
- Proximity to Work-Related Travel: A
- X-Factor: A
Convenience: East Nashville is known for its accessibility and proximity to downtown Nashville. With well-connected roads and public transportation options, commuting is easy and efficient.
Tourist Attractions: While not as tourist-heavy as downtown, East Nashville offers charming attractions such as Shelby Bottoms Nature Center & Greenway, and numerous historic sites.
Things to Do: The area boasts a vibrant arts scene, eclectic dining options, and live music venues. Popular spots include Five Points and Riverside Village.
Average Home Prices: The average home prices in East Nashville are moderately high but offer good value considering the amenities and demand.
Return on Investment: East Nashville has seen significant appreciation over the years, making it a solid choice for long-term investment.
Proximity to Work-Related Travel: Its proximity to downtown Nashville and major highways makes it ideal for professionals working in the city.
X-Factor: East Nashville's unique blend of historic charm and modern vibrancy makes it a highly desirable area for both renters and investors.
2. Memphis - Midtown
Grades:
- Convenience: B+
- Tourist Attractions: A
- Things to Do: A
- Average Home Prices: B
- Return on Investment: B+
- Proximity to Work-Related Travel: B+
- X-Factor: A-
Convenience: Midtown Memphis offers good connectivity with a range of public transportation options and is easily accessible from other parts of the city.
Tourist Attractions: Home to the Memphis Zoo, Overton Park, and numerous historic landmarks, Midtown is a hub of tourist activity.
Things to Do: The area is known for its cultural attractions, including theaters, galleries, and a lively dining scene. Overton Square is a popular entertainment district.
Average Home Prices: Midtown Memphis offers reasonably priced homes, making it an attractive option for investors looking for affordability.
Return on Investment: The area has seen steady growth, providing a reliable ROI for rental property investors.
Proximity to Work-Related Travel: Midtown's central location is convenient for those working in downtown Memphis and surrounding areas.
X-Factor: The vibrant cultural scene and historic architecture give Midtown a unique charm that attracts a diverse tenant base.
3. Knoxville - Old City
Grades:
- Convenience: B+
- Tourist Attractions: B+
- Things to Do: A
- Average Home Prices: B
- Return on Investment: B
- Proximity to Work-Related Travel: B
- X-Factor: B+
Convenience: Old City Knoxville is well-connected by road and public transport, making it easy to navigate.
Tourist Attractions: While not as tourist-centric as some other areas, Old City has a rich history and attractions such as the Knoxville Museum of Art and Market Square.
Things to Do: The area is known for its vibrant nightlife, live music, and diverse dining options. Regular events and festivals add to its appeal.
Average Home Prices: Home prices in Old City are moderate, offering a good balance between affordability and investment potential.
Return on Investment: Knoxville's steady growth and increasing popularity among renters make Old City a promising area for ROI.
Proximity to Work-Related Travel: The area's central location is convenient for those working in downtown Knoxville and nearby business districts.
X-Factor: Old City's historic charm, coupled with a modern, vibrant lifestyle, makes it a unique and appealing choice for renters and investors.
4. Chattanooga - North Shore
Grades:
- Convenience: A-
- Tourist Attractions: A
- Things to Do: A
- Average Home Prices: B+
- Return on Investment: A-
- Proximity to Work-Related Travel: B+
- X-Factor: A
Convenience: North Shore is known for its walkability and easy access to downtown Chattanooga, making it a highly convenient area.
Tourist Attractions: The area boasts attractions like the Tennessee Aquarium, Coolidge Park, and Walnut Street Bridge, drawing tourists year-round.
Things to Do: With an abundance of parks, restaurants, boutiques, and cultural venues, North Shore offers a high quality of life and numerous activities.
Average Home Prices: While slightly higher than the Chattanooga average, North Shore's home prices are justified by the area's amenities and desirability.
Return on Investment: North Shore has shown strong appreciation, making it an excellent area for long-term investment.
Proximity to Work-Related Travel: Its proximity to downtown Chattanooga and major highways makes it ideal for professionals.
X-Factor: North Shore's scenic beauty, combined with its vibrant community and cultural attractions, creates a unique and highly desirable environment for renters.
Conclusion
Investing in rental properties in Tennessee offers numerous opportunities, each with its unique set of advantages. From the bustling, culturally rich neighborhoods of Nashville to the scenic and vibrant areas of Chattanooga, understanding the nuances of each location is key to making a sound investment. By evaluating factors such as convenience, attractions, things to do, home prices, ROI, work-related travel proximity, and unique characteristics, you can unlock the full potential of your rental property investments in Tennessee.
⚡️
Reveal your property’s rental profitability
Buy this property and list it on Airbnb.