What a mixed bag of real estate we've found ourselves in. The 80s bail-out looks to be in for a repeat. What does this mean for Knoxville? Well, no doubt the sales have slowed down, many investors looking for a quick flip are holding their breath and not too happily.
I recommend that this is the time to buy. There are tons of foreclosures on the market in all areas of town right now - the interest rates are still low - in the 6%s - that's an awesome rate. The heady days of 4.875% (the lowest rate I've ever gotten on an investment purchase) are long gone, but for those looking to build something real now, I recommend rental investment.
I am purring my money where my mouth is and it's always been in a conservative place. Rentals have always been the way to go if you're buying a house - what does the current real estate slump mean for the rental home investor? More people need to rent your homes. What do real estate booms mean for a rental investor? The cost of the homes that others are buying for you are increasing in value more quickly - making your current investments more easily leveraged for more purchases.
True, I haven't seen the bottom fall out of the market in Knoxville, there's no reason to think it will. Flipping in good times is easy. Renting in good or bad times is not hard.
