Fix and Flip in Tennessee: Why 2025 Is the Year of Opportunity
Smart investors have been cashing in as Tennessee fix and flip profits surge. With median flip profits exceeding $68,000 statewide and demand projected to remain robust through 2025, Tennessee is now a premier flip market. Rapid population growth, affordability, and strong job gains are driving sustained real estate appreciation from Nashville to Chattanooga, making fix and flip more lucrative than ever.
- Fix and Flip in Tennessee: Why 2025 Is the Year of Opportunity
- Tennessee Market Overview: 2025 Data
- Fix & Flip Strategy: High-ROI Game Plan
- Property Types: Where to Find Profits
- Local Market Intelligence: Hot ZIP Codes & Costs
- Financing: Lender Spotlight & Terms
- Step-by-Step Flip Checklist
- Success Example: Real Numbers
- Ready to Flip in Tennessee? Get Started Today
Tennessee Market Overview: 2025 Data
- Median home price (statewide): $324,000 (Up 6.3% YoY)
- Median days on market: 34
- Inventory: 2.4 months’ supply (tight, favoring sellers)
- Rehab costs: $45-$65/sqft for mid-grade flips
- Lumber/material pricing: Flat after 2023 volatility
- National flip average profit: $67,250 — Tennessee average: $68,300
Fix & Flip Strategy: High-ROI Game Plan
Step-by-Step Strategy
- Source undervalued single-family homes on MLS, auctions, or wholesale deals
- Typical purchase: $140,000 – $270,000
- Renovation: $45,000 (basic) to $95,000 (comprehensive, 2,200 sqft+)
- ARV range: $260,000 – $420,000 (market dependent)
- Average flip ROI: 18%-26% (net, after costs and loan fees)
- Timeline: 3-4 months rehab, 2-6 weeks to resell
- Hard money rates: 11-12.5%, 2 points, up to 85% LTC
Property Types: Where to Find Profits
- Single-family homes: Hot in 37211 (Nashville), 38117 (East Memphis), 37421 (Chattanooga)
- Condos/Townhomes: New demand in 37203 (The Gulch, Nashville), 37013 (Antioch)
- Small Multi-family: Duplex flips in 37216 (Inglewood, Nashville), 37918 (Knoxville)
- Typical Target Property Condition: 1970s-90s builds, good bones, cosmetic updates or kitchens/baths, avoid full gut on first deals
Local Market Intelligence: Hot ZIP Codes & Costs
- 37211 (Nashville): Purchases $230k-$285k, resale $360k-$415k, days on market: 21-28
- 38117 (Memphis): Buy $180k-$215k, sell $285k-$325k, contractor labor avg $52/hr
- 37421 (Chattanooga): Typical flip spread: $85k after $60k rehab
- 37013 (Antioch): Revitalization zone, flips under $190k, ARVs $280k+
- 37918 (Knoxville): Duplexes purchased under $250k, post-reno $390k
- 37130 (Murfreesboro), 38134 (Bartlett), 37115 (Madison): All present sub-$220k entry points with major resale demand
- Permitting: $800-$3,000 typical, must pull for electrical, HVAC, roof, additions
- General contractor bids: $50-$75/hr, or $25-$40/sqft for full-scope jobs
Financing: Lender Spotlight & Terms
- Kiavi, Lima One, Merchant’s Mortgage, RCN Capital, Hard Money Tennessee
- Rates: 11-12.5% (hard money), 2-3 points, up to 85% LTC
- Private lenders: 8.5-10%, no points, flexible draw schedules
- Typical terms: 12-month loans, interest only, no prepay penalty, 600+ credit preferred, ARV-based lending
Step-by-Step Flip Checklist
- Identify target area/ZIP/criteria
- Source deals (MLS, wholesalers, direct mail)
- Estimate ARV & repair costs (use multiple contractor bids)
- Submit offers, negotiate
- Secure hard money or private loan approval
- Close, pull permits
- Demo, begin contractor-managed rehab
- Weekly progress inspections & budget tracking
- Finish, stage, professional photos
- List w/ local Realtor or flat-fee MLS
- Negotiate, contract, and close resale
- Track ROI, reinvest proceeds
- Due diligence tips: Inspect foundation, roof, mechanicals. Run comps within 0.5 miles.
- Renovation speed: Sub 60 days = best margins in TN
- Exit strategy: List in Q2/Q3 for 8-10% price premiums
Success Example: Real Numbers
- Purchase: $210,000 (37211, 3/2 SFR)
- Renovation: $55,000 (kitchen, baths, floors, paint, new roof, landscaping)
- Hold & Financing: $11,000 (6 months)
- Resale: $347,000 (ARV actual sale)
- Profit: $71,000 gross ($49,800 net after Realtor & closing)
- Timeline: Bought Jan 2024, closed resale May 2024
Lesson: Speed to market and efficient crews drive top-tier TN flip profits.
Ready to Flip in Tennessee? Get Started Today
- Start networking with local wholesalers, lenders, and contractors
- Research target ZIPs: 37211, 38117, 37421, 37918, 37013
- Walk three properties this week; practice estimating ARV and rehab costs
- Contact 2-3 hard money lenders for approval
Bookmark this guide and refer back as you source deals, run numbers, and build your team. Tennessee flipping profits in 2025 belong to well-prepared, action-oriented investors. Start now—your next successful flip is waiting!
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