How To Invest In Real Estate In Tennessee: Top Strategies In 2025

If you’ve been wondering how to invest in real estate in Tennessee, now’s the time to lean in. With a population climbing past 7.2 million, strong job growth, and home prices still below the national average, the Volunteer State offers a rare mix of affordability and opportunity for new and experienced investors alike.

Whether you’re drawn to the booming rental markets of Nashville, flipping homes in Memphis, or wholesaling distressed properties in Chattanooga, Tennessee is packed with ways to build wealth in real estate—even if you’re starting from scratch.

In this guide, we’ll walk you through:

• Why Invest In Tennessee Real Estate?
• The Importance Of Mentorship In TN Real Estate Investing
• Real Estate ROI In Tennessee
• Wholesale Real Estate In Tennessee
• Fix & Flip Real Estate In Tennessee
• Buy & Hold Real Estate In Tennessee
• Best Places To Invest In Real Estate In Tennessee
• How To Invest In Real Estate In Tennessee: FAQ

Ready to Take the Next Step in Real Estate Investing? Join our FREE live webinar and discover the proven strategies to build lasting wealth through real estate.

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Why Invest In Tennessee Real Estate?

If you’re wondering how to invest in real estate in Tennessee, it starts with understanding why the market is catching national attention. The state’s combination of strong job growth, rising population, and relatively low housing costs make it one of the most appealing destinations for investors right now.

Since 2010, Tennessee’s population has grown by nearly 900,000 people, reaching over 7.2 million in 2024. That kind of growth drives housing demand—and with unemployment holding steady at just 3.7%, the job market is stable enough to support it. According to Zillow, the median home value in Tennessee is $319,167, up from $209,293 five years ago—a staggering 52.5% increase. That reflects strong real estate appreciation rates in Tennessee, especially in and around the state's rapidly expanding metro areas.

Add to that the 1,437 properties currently in foreclosure (plus 1,221 headed for auction), and you’ve got a pipeline of discounted inventory that’s ideal for investors. Whether you’re interested in fix-and-flips, long-term rentals, or distressed properties, there are real estate investment opportunities in Tennessee for every budget and strategy.

From affordable real estate markets in Tennessee like Clarksville to higher-end plays in Nashville and Franklin, the state’s housing diversity allows for flexible investment entry points. Plus, there are generous tax benefits of investing in Tennessee real estate, including no state income tax on wages and potentially favorable treatment of capital gains.

If you’re looking for the best cities for real estate investing in Tennessee, you’ll find no shortage of options delivering both cash flow and long-term equity growth.

Benefits Of Investing In Real Estate In Tennessee

One of the biggest reasons investors are flocking to Tennessee? It strikes a rare balance between affordability and strong returns. Whether you’re a new investor or looking to expand your portfolio, how to invest in real estate in Tennessee comes down to understanding the state’s unique strengths.

• Accessible Price Points: With a median home value of $319,167, Tennessee homes are still priced well below the national average. This makes it easier for first-time buyers and out-of-state investors to get in without breaking the bank.
• Steady Cash Flow Potential: With average monthly rents at $1,590 and demand remaining high in many cities, Tennessee offers excellent ROI in Tennessee real estate investing, especially for buy-and-hold strategies.
• Appreciation Without the Bubble Risk: Over the past five years, Tennessee home values have jumped more than 50%. That kind of growth reflects strong fundamentals—not speculation—highlighting long-term real estate market trends in Tennessee.
• Landlord-Friendly Environment: Tennessee’s rental laws tend to favor landlords, making property management more straightforward and less risky than in tenant-heavy states.
• Opportunities Across Strategy Types: From short-term rentals in tourist towns to long-term holds in suburbs and flips in growing urban neighborhoods, there are real estate investment opportunities in Tennessee to match nearly every goal.

If you’re looking for real estate investing for beginners in Tennessee, you’ll find that the market offers just the right mix of affordability, opportunity, and scalability.

The Importance Of Mentorship In TN Real Estate Investing

If you’re exploring how to invest in real estate in Tennessee, one of the smartest moves you can make is finding the right mentor. Real estate is filled with learning curves, and trying to go it alone often leads to confusion or costly mistakes—especially for Tennessee real estate for beginners. That’s why we created the Ultimate Investor Program: a hands-on, step-by-step system designed to give you real-world guidance, expert strategies, and the accountability you need to succeed. As one of the best real estate investment programs in Tennessee, we connect you with active investors and proven deal structures taught by one of the top real estate investment companies in Tennessee. Whether you're just getting started or looking to grow, our Tennessee real estate coaching program helps you move with confidence.

*For in-depth training on real estate investing, Real Estate Skills offers extensive courses to get you ready to make your first investment! Attend our FREE Webinar Training and gain insider knowledge, expert strategies, and essential skills to make the most of every real estate opportunity that comes your way!

Real Estate ROI In Tennessee

When learning how to invest in real estate in Tennessee, one of the first things new investors want to know is this: What kind of return can I expect? The good news is that ROI in Tennessee real estate investing can be incredibly strong—whether you’re wholesaling, flipping, or buying rental properties.

Let’s break it down:

• Wholesaling offers quick cash without owning property. We recommend aiming for $10,000+ per wholesale assignment fee. With the right strategy, wholesalers can close multiple deals per month—stacking up consistent profits while building experience.
• Fix-and-flip investors also have strong potential. Tennessee’s median home value ($319,167) is 11.6% below the national average, which puts typical gross flipping profits around $63,648—especially in markets where demand is rising and supply is limited.
• Buy-and-hold rentals deliver passive income and long-term wealth. With an average rent of $1,590/month ($19,080 annually), smart investors can earn solid cash flow, especially in cities with high rental demand and low vacancy rates.

As you plan your next steps, remember: knowing how to analyze real estate deals in Tennessee is the key to maximizing returns. Whether you’re preparing for real estate investing in Tennessee in 2025 or just looking for some Tennessee real estate investment success stories to learn from, there’s no shortage of opportunity in the Volunteer State.

Wholesale Real Estate In Tennessee

If you’re wondering how to invest in real estate with no money in Tennessee, wholesaling is one of the best ways to get started. It’s a strategy that allows beginners to break into the business without buying, renovating, or owning any property. Instead, wholesalers find great deals—often distressed properties—put them under contract, and assign that contract to a cash buyer for a profit.

Wholesaling real estate in Tennessee works especially well because the state has a steady supply of motivated sellers and distressed homes. With 1,437 properties currently in foreclosure, there are plenty of opportunities to uncover undervalued deals and connect them with eager investors. These types of transactions are perfect for building capital, especially if you're new to the game.

The key is knowing how to find off-market properties in Tennessee—through direct mail, driving for dollars, bandit signs, or online tools. You’ll also want Tennessee MLS access for real estate investors so you can run comps and price your deals accurately. With a bit of hustle and the right guidance, wholesaling real estate in Tennessee can become your launchpad into long-term investing.

How To Wholesale Real Estate In Tennessee

If you’re serious about learning how to wholesale real estate in Tennessee, follow these nine proven steps. With the right plan and local knowledge, you can land your first deal faster than you think—without needing a license or a large budget.

1. Partner With a Wholesale Mentor: The fastest way to start wholesaling is to learn from someone who's already doing it successfully. A mentor can help you avoid beginner mistakes, navigate Tennessee-specific laws, and teach you how to talk to sellers, analyze deals, and build your cash buyers list. Our Ultimate Investor Program offers direct mentorship for beginners looking to get their first wholesale deal done the right way.
2. Learn Tennessee Real Estate Wholesaling Laws and Contracts: Wholesaling is legal in Tennessee, but you need to know the rules. State law requires transparency—you must disclose your role in the transaction and understand how assignment contracts work. It’s also smart to consult a local real estate attorney to make sure your paperwork and disclosures are compliant.
3. Understand the Tennessee Real Estate Market: Study the market dynamics in areas like Memphis, Nashville, and Chattanooga. Learn where buyers are actively purchasing and where properties are undervalued. The more you understand real estate market trends in Tennessee, the easier it is to spot a good deal and price it correctly.
4. Build a Cash Buyers List: Your buyers are your business. Network with landlords, flippers, and investors through local REIAs, Facebook groups, and real estate meetups. Once you have a solid list, you’ll be able to quickly assign deals and collect fees—sometimes in just days.
5. Find Motivated Sellers and Distressed Properties: Look for homeowners who need to sell fast—like those facing foreclosure, probate, divorce, or property damage. Use strategies like driving for dollars, sending direct mail, cold calling, or leveraging tools like PropStream to find Tennessee distressed property investing leads.
6. Put Distressed Properties Under Contract: Once you find a motivated seller, negotiate a price that allows enough room for your buyer to make a profit. Use a purchase agreement that includes an assignment clause so you can legally transfer the contract to your end buyer.
7. Assign Contracts to Cash Buyers: Share the details of your deal with your buyers list and collect a wholesale assignment fee—often $10,000 or more. Be transparent about repairs, comps, and your asking price to build trust and ensure a smooth transaction.
8. Close Deals and Collect Assignment Fees: Coordinate the closing with a title company familiar with wholesaling in Tennessee. Once your buyer funds the deal, you get paid your fee—no fixing, no financing, no risk of owning the property.
9. Double Close When Necessary: If a seller or buyer isn’t comfortable with an assignment, or if you want to keep your profit private, a double close is a great option. This involves briefly taking ownership of the property and reselling it the same day. It’s a bit more paperwork, but still a great way to get deals done legally and profitably.

If you’re ready to dive deeper and want step-by-step help, our Ultimate Investor Program can walk you through your first wholesale deal in Tennessee from start to finish.

Read Also: Is Wholesaling Real Estate Legal? The Ultimate Guide For Investors

Fix & Flip Real Estate In Tennessee

If you’re looking for a real estate strategy with strong short-term profit potential, fix-and-flip real estate in Tennessee is a smart play—especially for investors who aren’t afraid of a little elbow grease. This method involves buying undervalued or distressed properties, renovating them, and reselling at a higher price—sometimes within a matter of months.

Tennessee fix-and-flip opportunities are abundant thanks to a steady supply of older homes, affordable entry prices, and growing demand from homebuyers across cities like Knoxville, Chattanooga, and Memphis. With the state’s median home value still below the national average, investors have room to purchase and renovate properties while staying under market value. That’s key to locking in solid margins on the resale.

Getting started doesn’t mean you need to have all the capital upfront. Many investors use real estate investment loans in Tennessee—like hard money, bridge loans, or private lenders—to cover both purchase and rehab costs. Others explore creative financing strategies in Tennessee real estate, such as partnering with capital investors or using seller financing.

Want to increase your odds of success? Enroll in Tennessee house flipping courses or work with experienced mentors to learn the ins and outs of local permitting, zoning, and buyer preferences. A well-executed flip doesn’t just boost your bank account—it builds your confidence as a serious investor.

How To Fix & Flip Real Estate In Tennessee

Flipping houses is part art, part numbers game—and in Tennessee, it's a real opportunity for investors willing to follow a smart, repeatable process. Whether you’re renovating brick bungalows in Chattanooga or post-war ranch homes outside Nashville, here’s how to flip houses in Tennessee the right way from start to finish:

1. Partner With a Fix-&-Flip Mentor: The quickest way to avoid expensive mistakes is to learn from someone who’s been there. A mentor can show you how to budget for unexpected repairs, navigate permitting in Tennessee, and build a network of local contractors.
2. Pick the Right Market: Target areas where demand is rising and inventory is tight. Neighborhoods near universities, hospitals, or major employers tend to flip quickly. Use tools like Redfin, PropStream, or local MLS data to find zip codes with increasing sale prices.
3. Secure the Necessary Funding: You don’t need all cash to flip a house. Many investors use real estate investment loans in Tennessee, including hard money, bridge loans, or even joint ventures. Get pre-approved so you can move fast when deals appear.
4. Build a Network of Skilled Contractors: Having a dependable contractor in Tennessee is half the battle. Look for licensed professionals who understand local building codes and can complete work on time. Vet their work thoroughly—flipping success depends on quality and speed.
5. Work With a Real Estate Agent Who Knows Investors: Find a local agent who understands investor math. They’ll help you locate distressed properties, run accurate comps for ARV, and list your finished project competitively when it’s time to sell.
6. Find the Right Property: Not every fixer is worth the flip. Look for cosmetic fixers in strong neighborhoods rather than total gut jobs. In Tennessee, older homes can have charm—but also hidden issues—so a solid inspection is key.
7. Make Discovery Calls: Before submitting an offer, call the listing agent to ask smart questions. Is the seller motivated? Are there multiple offers? Any known repairs? These calls help you strategize your offer and avoid surprises.
8. Analyze Your Deal Thoroughly: Run the numbers: estimate repair costs, calculate holding and closing costs, and confirm your ARV. Use the 70% rule or another conservative metric to make sure there’s enough room for profit.
9. Call Agents & Submit Written Offers: When the deal makes sense, act fast. Submit a clean offer with the necessary contingencies (inspection, financing) and include your credentials as an investor ready to close quickly.
10. Perform Due Diligence When Your Offer Is Accepted: Once under contract, get your contractor and inspector out right away. This is your chance to confirm or renegotiate based on the actual repair needs. Walk away if the numbers no longer work.
11. Close the Deal: Use a local title company familiar with investment transactions. Confirm liens are cleared, funds are ready, and you have the green light to start renovations as soon as you take ownership.
12. Renovate the Property: Stick to upgrades that buyers want: kitchens, bathrooms, flooring, and curb appeal. In Tennessee, pay attention to HVAC efficiency and moisture management—both are key selling points.
13. Prep & List the Property on the MLS: When the work is done, clean thoroughly, stage if needed, and get professional photos. List the property with a sharp agent who understands investor exit goals.
14. Field Offers & Negotiate: Review offers carefully—not just price, but also contingencies and buyer financing. Cash or conventional buyers with quick closing timelines are often worth accepting over higher but shakier offers.
15. Accept The Best Offer: Once the right deal lands, accept and move toward closing. With proper planning, this is the moment your strategy pays off—turning effort and insight into real, tangible profit.

Want help executing every step of this process in Tennessee? Join our Ultimate Investor Program, where experienced pros walk you through your first (or next) successful flip—without guesswork.

Read Also: How To Flip Houses In Tennessee: 15-Step Home Renovation Guide

Buy & Hold Real Estate In Tennessee

If your goal is to build long-term wealth and generate passive income, then buy-and-hold real estate in Tennessee should be at the top of your list. This strategy is all about acquiring properties, renting them out, and holding onto them over time as they appreciate and deliver steady monthly cash flow.

Tennessee’s real estate landscape is perfect for this approach. With a median home value of $319,167 and average rents around $1,590, investors can find solid rent-to-price ratios in both urban and rural areas. Whether you're buying rental properties in Tennessee or taking on light renovations to boost returns, the numbers often work out in your favor—especially in markets like Murfreesboro, Clarksville, and parts of East Tennessee.

Buy-and-hold investing also gives you flexibility. You can use lease options and rent-to-own in Tennessee to attract tenants who might one day become buyers, or tap into Section 8 housing investments in Tennessee for more stable, government-backed rental income. And depending on your goals, you might find different advantages in East Tennessee vs West Tennessee real estate investing strategies—with East Tennessee offering strong appreciation potential and West Tennessee offering better cash flow in many cases.

Ultimately, this strategy isn’t just about owning property. It’s about creating passive income through real estate in Tennessee, building equity year after year, and setting yourself up for long-term financial freedom. And if you’re not sure where to begin, we’ve got you covered inside the Ultimate Investor Program, where we teach you exactly how to start and scale your rental property portfolio.

How To Build A Cash-Flowing Rental Portfolio In Tennessee

Want to create passive income and long-term wealth? Here's how to build a cash-flowing rental portfolio in Tennessee using a straightforward, beginner-friendly system. Whether you're eyeing duplexes in Memphis or single-family homes in Knoxville, this 8-step process will help you scale smart and sustainably.

1. Adopt an Investor Mindset: Start by shifting how you think. You’re not just buying homes—you’re building assets. Set specific goals (like $5,000 in monthly cash flow or five rentals in five years) and commit to learning how to invest in real estate in Tennessee with purpose and clarity.
2. Master Your Personal Finances: Lenders want to see stability. Pay down high-interest debt, boost your credit score, and build a small reserve fund. It’ll make financing easier—and reduce your stress when unexpected repairs pop up.
3. Get Pre-Approved and Secure Funding: Know what you can afford before you start shopping. Whether you’re using a conventional loan, DSCR loan, or exploring creative financing strategies, having funding lined up gives you a major edge in competitive Tennessee markets.
4. Define Your Rental Property Investment Criteria: What kind of properties make sense for your goals? Are you after high cash flow, long-term appreciation, or a little of both? Clarifying this early helps you avoid distractions and focus on deals that actually align with your strategy.
5. Find and Analyze Rental Properties: Use tools like Zillow, PropStream, and the MLS to spot potential deals. Then dig into the numbers—look at cap rate, cash-on-cash return, and rental comps. The ability to analyze real estate deals in Tennessee will make or break your success.
6. Submit Offers and Negotiate: When a property checks all the boxes, don’t hesitate. Work with an investor-friendly agent to craft strong offers that include important contingencies (like inspections). Don’t be afraid to negotiate repairs or price—sellers expect it.
7. Close on the Property: Work with a knowledgeable Tennessee title company or attorney to handle closing. Verify that the title is clean and all paperwork is squared away. Once it’s yours, you’re officially a landlord.
8. Manage Your Rental Property Investment: Decide whether to self-manage or hire a property manager. Either way, the key to long-term success is keeping your property well-maintained, screening tenants carefully, and staying on top of the market. Follow smart Tennessee rental property management tips to keep income steady and problems low.

Ready to make this happen? Our Ultimate Investor Program gives you the tools, training, and mentorship to build a profitable rental portfolio from scratch—right here in Tennessee.

Best Places To Invest In Real Estate In Tennessee

Tennessee offers a wide variety of markets that appeal to every type of investor—from those chasing strong cash flow to others aiming for long-term appreciation. Whether you're just learning how to invest in real estate in Tennessee or you're looking to expand an existing portfolio, these five cities stand out for their growth, rental demand, and investment potential.

Nashville, TN

Nashville continues to be one of the hottest markets in the South. With booming industries in healthcare, tech, and entertainment, the city draws a steady flow of transplants and professionals. The population growth has pushed both rents and home values upward, making it a prime location for buy-and-hold investors. Short-term rental regulations are tighter here, but long-term demand remains high. Investors seeking appreciation and strong tenant quality will find opportunity in urban neighborhoods and suburban pockets alike. Nashville is ideal for those looking for balanced ROI and long-term equity.

Memphis, TN

If cash flow is your top priority, Memphis should be at the top of your list. Home prices are among the most affordable in the state, yet rental demand remains strong thanks to a stable workforce in shipping, healthcare, and education. Memphis is a hub for wholesaling real estate in Tennessee due to its high number of distressed properties and motivated sellers. Investors love the city's high rent-to-price ratios and reliable tenant base. Whether you’re wholesaling, flipping, or holding rentals, Memphis offers consistent returns with relatively low entry costs.

Knoxville, TN

Knoxville blends affordability with steady appreciation, making it one of the most well-rounded investment markets in the state. The University of Tennessee brings consistent rental demand, and new development continues to attract both students and young professionals. Investors interested in buy-and-hold real estate in Tennessee will appreciate the area's low vacancy rates and rising rents. East Knoxville offers value-add opportunities, while West Knoxville appeals to higher-income tenants. Whether you’re a beginner or seasoned investor, Knoxville’s stable market and strong fundamentals make it a smart choice.

Chattanooga, TN

Chattanooga has transformed into a tech-forward city with a thriving startup scene and one of the fastest internet systems in the country. It’s an excellent location for long-term investors and those looking to capitalize on fix-and-flip real estate in Tennessee. Neighborhoods near downtown and the Southside are seeing major revitalization, and local policies are friendly to investors. With growing demand and relatively low property taxes, Chattanooga strikes a rare balance between affordability and appreciation. Investors targeting mid-sized cities with upward momentum should keep a close eye here.

Clarksville, TN

As one of the fastest-growing cities in Tennessee, Clarksville is full of potential. Proximity to Fort Campbell keeps rental demand steady, and the population boom is driving new development across the city. The area’s housing prices remain well below the state average, providing an affordable entry point for investors just learning how to invest in real estate in Tennessee. New construction and suburban neighborhoods offer solid opportunities for rentals, flips, and even lease options. Clarksville is a rising star that combines growth with accessibility—perfect for new and experienced investors alike.

Read Also: Best Places To Buy Rental Property In Tennessee For 2025

How To Invest In Real Estate In Tennessee: FAQ

Whether you're just starting your investment journey or looking to sharpen your strategy, these common questions about how to invest in real estate in Tennessee can help you get clarity fast. 

How much money do you need to invest in real estate in Tennessee?

You can start with little to no money using strategies like wholesaling or creative financing, though most buy-and-hold investors should budget at least 10–20% down.

Is Tennessee a landlord-friendly state?

Yes—Tennessee has favorable landlord laws that allow for efficient evictions and minimal rent control, making it a great state for rental property investors.

Are there creative financing options for real estate investors in Tennessee?

Absolutely. Many investors use seller financing, subject-to deals, hard money loans, and partnerships to fund deals without large amounts of personal capital.

What are the tax benefits of owning rental property in Tennessee?

Rental property owners can deduct expenses like mortgage interest, depreciation, repairs, and more—helping reduce taxable income.

What’s the average ROI on rental properties in Tennessee?

Returns vary by market, but many investors in cities like Memphis and Chattanooga report cash-on-cash returns of 8–12% or more.

Can you invest in Tennessee real estate from out of state?

Yes—Tennessee is a popular market for out-of-state investors due to its affordability, landlord laws, and turnkey opportunities.

Where are the best cities to invest in Tennessee real estate?

Top picks include Nashville, Memphis, Knoxville, Chattanooga, and Clarksville—each offering a mix of appreciation and cash flow potential.

Do I need a real estate license to wholesale in Tennessee?

No license is required to wholesale real estate in Tennessee, but you must follow state laws regarding contract assignments and disclosures.

Final Thoughts On Real Estate Investing In Tennessee

If you’ve been wondering how to invest in real estate in Tennessee, now’s the time to stop researching and start taking action. With its fast-growing population, affordable entry points, strong rental demand, and investor-friendly laws, Tennessee is one of the best places in the country to build long-term wealth through real estate. Whether you're wholesaling your first deal in Memphis, flipping a fixer-upper in Chattanooga, or buying a rental in Knoxville, the opportunities are wide open for new and aspiring investors.

And the best part? You don’t have to do it alone. Our Ultimate Investor Program is designed to guide you step-by-step—no guesswork, no fluff—just real strategies that work in today’s Tennessee market. Let's get started.

Ready to Take the Next Step in Real Estate Investing? Join our FREE live webinar and discover the proven strategies to build lasting wealth through real estate.

Whether you're just getting started or ready to scale, we'll show you how to take action today. Don't miss this opportunity to learn the insider tips and tools that have helped thousands of investors succeed! Seats are limited—Reserve Your Spot Now!

*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.