Tennessee flips still make some of the biggest checks in the South. The typical Tennessee flip earned a $91,232 gross profit and a 49.6% gross ROI in Q1 2026, more than double the national return. But a year earlier that ROI was 73.7%, and Nashville and Knoxville are now slow, high-inventory markets.
Here's where Tennessee's flip math still works in 2026, and where it's getting tight.
Tennessee House Flipping in 2026 at a Glance
- National flip margin: 21.5% typical gross ROI and $60,526 typical gross profit in Q2 2026, down from 27.6% and $71,000 a year earlier (ATTOM)
- Tennessee flip returns: 1,781 flips in Q1 2026, an 8.7% flipping rate, $91,232 typical gross profit and a 49.6% gross ROI, down from 73.7% a year earlier (ATTOM)
- Trailing year: about 13,552 flips in the 12 months to July 2026, eighth among states, averaging $87,000 gross profit and 171 days to flip (BatchData)
- Statewide median price: about $394,000 in June 2026, up 3.6% year over year (Agent Pronto)
- Inventory: 5.2 months of supply in June, up from 4.9, with active listings up 6.9% (Agent Pronto)
- Property tax: about a 0.52% effective rate, from 0.12% in Pickett County to 0.97% in Shelby (AARP)
Why Tennessee Flip Margins Are Still Wide (but Shrinking)
ATTOM's gross ROI measures resale price against purchase price, before rehab, financing and selling costs. Tennessee's 49.6% is one of the stronger readings in the country, and it rests on two things:
- Low carrying costs. A 0.52% property tax rate is about a third of what flippers pay in Ohio or Texas, so a slow resale hurts less.
- A two-speed market. Memphis offers cheap, distressed stock with a big gap between as-is and renovated value. Nashville offers high resale prices for buyers who'll pay for move-in ready.
What's squeezing it:
- Inventory is building. At 5.2 months statewide, Tennessee is close to balanced, and buyers have more choices than at any point in years.
- Prices are growing slowly. Mid-single-digit gains at best, and Nashville's July median was up just 1.1%. Appreciation won't cover a thin buy.
- Holds are long. BatchData's 171-day average flip means roughly six months of interest and insurance.
The 24-point drop in ROI over a year tells you the easy deals are gone. The spread is still there, but you have to buy for it.
Where to Flip in Tennessee: Metro by Metro
Prices below come from different sources and periods. Use them as a starting point and pull comps for the street.
Memphis
Memphis is Tennessee's volume flipping market. Its flipping rate was 11.2% in Q1 and 9.5% in Q2 2026, among the highest of any US metro over 1 million people. The Memphis Area Association of Realtors put the March median at $223,000, down 0.9%. Cheap entry prices make it attractive, but Shelby County has the state's highest property taxes and many neighborhoods have a deep rental-investor buyer pool, so underwrite your exit to who actually buys on that block.
Nashville
Nashville is the high-price, high-stakes market. Its July median was $480,000, up 1.1%, with active inventory up 10% to 12,461 homes and about 40 days to sell, and sales fell sharply year over year. Big resale prices make big dollar profits possible, but more competing listings mean your finished flip has to beat new construction on finish and price.
Knoxville
Knoxville has gone slow. Redfin data puts its first-half 2026 median at $397,365, up 1.7%, with 65.7 median days on market and 3.9 months of supply. Prices are holding, but more than two months to sell adds real holding cost. Budget for it from day one.
Chattanooga
Chattanooga is quietly improving. Its median was $355,496, up 2.8%, with sales up 8.1% and days on market down 17 to about 50. Months of supply is high at 4.3, but faster sales and rising volume make it one of the better-balanced Tennessee markets for a mid-priced flip.
Live Tennessee Deals on Frontflip
Frontflip tracks auction and Opendoor homes in Tennessee, updated daily. Open a market to see every deal on the map with an instant investment report:
What a Tennessee Flip Costs in 2026
- Financing: Hard money generally runs about 9.5% to 13% plus 1.5 to 3 points. Your resale buyer faces a 30-year mortgage around 6.7%.
- Property taxes: Low at about 0.52%, but nearly 1% in Shelby County.
- Transfer and mortgage tax: The state charges $0.37 per $100 on the deed and $0.115 per $100 on the mortgage, so about $1,110 on a $300,000 sale. It's customarily the buyer's, but negotiable (HomeLight).
- Insurance: A real line item. Estimates for an average policy run from about $3,045 to $4,220 a year, driven by tornadoes, severe storms and flooding. Flood needs a separate policy.
- Business tax: No tax on wages, but LLCs and corporations can owe Tennessee's 6.5% excise tax on net earnings plus a franchise tax. Ask a Tennessee CPA before you set up your flipping entity.
Check your numbers with Frontflip's Tennessee rehab cost estimator and Tennessee seller net sheet before you write an offer.
Tennessee Rules Flippers Should Know
- Wholesaling requires disclosure. Under Public Chapter 72 (SB 909), effective March 25, 2025, a buyer wholesaling property must disclose their equitable interest to the seller and to the end buyer. Assigning contracts without a license is allowed as long as you disclose and stay out of brokering.
- Contractor licensing kicks in at $25,000. Any job of $25,000 or more needs a state contractor's license in every county. Residential jobs from $3,000 to $25,000 need a Home Improvement license in Davidson, Shelby, Knox, Hamilton, Rutherford and four other counties (Tennessee Board for Licensing Contractors). Many flip rehabs cross those lines, so hire licensed.
- Permit and disclose your work. You're the seller of record, so be ready to answer for every repair you made. Unpermitted work tends to surface at the buyer's inspection and can stall or kill a sale.
2026 Outlook for Flipping Houses in Tennessee
Tennessee is shifting toward balance: inventory over five months, single-digit price growth and slower sales in Nashville and Knoxville. Profits per flip are still well above the national average, so the state remains a good place to flip, but the rest of 2026 favors buyers who get real discounts. Memphis offers volume and low entry prices, Chattanooga has the best momentum, and Nashville rewards investors who can finish a house to a high standard.
Key Takeaways
- Tennessee flips earned a 49.6% gross ROI and $91,232 typical profit in Q1 2026, but ROI fell from 73.7% a year earlier.
- Low property taxes help, but insurance and long holds eat into the spread.
- Memphis is the volume market; Nashville is the high-price market with rising inventory.
- Jobs of $25,000 or more need a licensed contractor, and wholesalers must disclose their interest.
- LLCs may owe the 6.5% excise tax, so plan your entity with a CPA.
Frequently Asked Questions
Is flipping houses in Tennessee profitable in 2026?
Yes, more than most states. Tennessee's typical gross ROI was 49.6% in Q1 2026 against about 21.5% nationally in Q2, though returns are falling fast as inventory builds, so buy well below market.
What is the best city to flip houses in Tennessee?
Memphis has the most flipping activity and the lowest entry prices; Chattanooga has the best recent momentum. Nashville can produce the largest dollar profits but has rising inventory and slowing sales.
Is wholesaling legal in Tennessee?
Yes. Since March 25, 2025, wholesalers must disclose their equitable interest in writing to both the seller and the end buyer. You don't need a license to buy, renovate and resell your own property.
How much does it cost to flip a house in Tennessee?
Beyond purchase and rehab, plan for hard money at about 9.5% to 13% plus points, roughly 0.52% a year in property taxes, about $3,000 to $4,200 a year for insurance and selling costs. Transfer tax is $0.37 per $100.
Looking for last year's numbers? See 2025 Key Stats: Flipping Houses in Tennessee Trends.
Want to run the numbers on a Memphis or Nashville flip? Pull up the address in Frontflip for flip scenarios, rental projections and comps in seconds.