Quite a number of home sales in Knoxville TN and surrounding area have been by investors. I haven't quite worked out the exact percentage, but right now, you can't possibly go wrong investing in Knoxville TN real estate. So, here are 5 Reasons to Invest in Knoxville TN Real Estate.
1. Rental income is stable! Yessiree bob, while property values have gone down, rents have not. There isn't much more to explain about that, is there?
2. Investment property is low-risk. Even though property values have dipped over the past few years, it hasn't dipped as low as some stocks and bonds. Even in good times, stock and bonds will fluctuate more often than property values (and don't forget #1!). But, because investing in real estate is generally a long-term investment, you will find a time when it's beneficial to you to sell. Which leads me to #3.
3. Your debts are covered. Even if your investment property has lost value (see #2), it should still be paying enough to cover your debts and pay you monthly.
4. Deductions, Deductions, Deductions! There are a number of deductions available to real estate investors. You should check your own personal tax situation with your accountant and decide which deductions are available to you.
5. Your money is truly working for you. When you invest in property the right way, you will be making money, using limited amounts of your own money.
So, what does that mean for you investors in the Knoxville TN area? Simply put, there are a number of options from single family dwellings to apartment complexes. Some of the foreclosures that have come on the market are great investments, needing little work. There are also some great non-foreclosures on the market that are wonderful investment properties.
I have noticed that a number of multifamily dwellings (duplex and 4-plexes) are going under contract at a quicker rate during the past couple of weeks. If a multifamily dwelling is an investment you are considering, you'll want to move pretty quickly.