Buying Real Estate in Tennessee as a Foreigner: What You Need to Know

Tennessee has quickly become one of the fastest-growing and most business-friendly states in the U.S. Affordable compared to coastal markets, the state also benefits from strong job creation, a diverse economy, and the absence of a state income tax. Cities like Nashville, Memphis, Knoxville, and Chattanooga offer a mix of rental opportunities from short-term tourist rentals to long-term workforce housing.

For international buyers, Tennessee is more than an emerging market; it’s an accessible entry point into U.S. real estate. While traditional financing blocks many foreign nationals without U.S. credit or income, Waltz makes the process possible.

Key takeaways

• Tennessee combines population growth, affordability, and a pro-investor tax environment.
  
  
• Major metros like Nashville, Memphis, Knoxville, and Chattanooga offer diverse rental opportunities.
  
  
• Waltz helps foreign nationals overcome financing concerns with a fully digital process.

Why people invest in Tennessee

Tennessee has climbed the ranks as one of the most attractive U.S. destinations for foreign buyers. Its strong economy, affordable housing, and tax-friendly policies make it a natural choice for international investors seeking rental property options.

Population growth and job creation

Tennessee is a top migration destination, drawing residents from higher-cost states like California and New York. Major industries fuel this growth: healthcare in Nashville, logistics in Memphis, automotive manufacturing in Chattanooga, and a rising tech presence in Knoxville and Nashville. These expanding sectors ensure steady employment and sustained rental demand.

Tax environment

Tennessee is one of only a handful of states with no state income tax. Combined with a consistently pro-business climate and growth-focused regulations, this creates a favorable environment for both residents and property investors.

Housing affordability

Compared to coastal markets, Tennessee offers significantly lower median property prices. For foreign buyers, this means more accessible entry points and the ability to diversify portfolios without committing as much capital per property.

Rental demand

Across Tennessee, different cities see strong rental demand driven by unique local factors. Understanding what fuels each market helps investors identify opportunities for consistent occupancy and returns.

• Nashville: Tourism, conventions, and the music industry keep short- and mid-term rentals in constant demand.
  
  
• Memphis: Healthcare and logistics hubs support a large renter population.
  
  
• University towns: Knoxville is home to the University of Tennessee and Murfreesboro is home to Middle Tennessee State. These towns provide stable demand from students and faculty year-round.

Who’s investing in Tennessee?

Foreign interest in Tennessee real estate has grown steadily as the state establishes itself as both affordable and business-friendly. According to industry reports, Tennessee now ranks among the top-tier U.S. destinations for international travelers.

Case study: Canadian investor scaling his portfolio in Tennessee 

Matt, an experienced investor from Canada, wanted to expand his real estate portfolio into the U.S. after facing restrictions and rising costs at home. Initially, he wasn’t sure how U.S. financing would work, but Waltz guided him through the cash-out refinance process. 

Within weeks, he was able to close on a value-add single-family property in Columbia, Tennessee, turning renovation gains into liquid capital to fund his next deal. Matt’s journey demonstrates how Tennessee’s landlord-friendly laws, affordable housing, and strong rental markets are now within reach for international investors with the right financing partner.

Learn more: Waltz Success Stories

Understanding foreign investor motivations

Foreign nationals are choosing Tennessee not just for its affordability, but also for the financial security and lifestyle advantages it provides.

Hedge against inflation and currency volatility

Investing in U.S. real estate allows international buyers to hold assets denominated in U.S. dollars, providing a stable store of value when their home-country currency is experiencing fluctuations or depreciation. This can protect wealth from inflation and currency instability, as property values and rental income in the U.S. have historically kept pace with or outpaced inflation. 

Learn more: 2025 NAR Report on Foreign Buyers

Access to fixed-rate mortgages

In many countries, variable-rate mortgages are the norm, which exposes borrowers to sudden interest rate increases and unpredictable monthly payments. U.S. fixed-rate mortgages, often available over 15 or 30 years, provide stability by locking in consistent payments for the life of the loan. This predictability makes it easier for investors to plan cash flow, forecast returns, and scale a rental portfolio without the risk of unexpected spikes in financing costs.

Lifestyle drivers

Tennessee offers a mild climate, lower living costs, and vibrant cultural communities in cities like Nashville and Memphis. These features attract retirees, globally mobile families, and professionals looking for both affordability and quality of life.

Why Tennessee works for foreign nationals (with Waltz)

Even with Tennessee’s growth and affordability, financing has long been a barrier for international buyers. Traditional banks typically require U.S. credit, income verification, or in-person branch visits. Waltz eliminates those hurdles with a lending model designed for foreign nationals.

Does the property cash flow? If so, you can potentially get a loan

Instead of relying on personal income or U.S. credit history, property-based loans focus on the potential rental income of the property itself. Approval is determined by whether the property can generate enough revenue to cover its expenses.

The calculation is straightforward:

“Total Monthly Debt Service” includes the mortgage principal and interest, property taxes, insurance, and any HOA fees. A ratio of 1.0 or higher means the rental income can cover all costs, making the property eligible for financing. This approach is particularly attractive to international buyers looking to invest from abroad.

Flexible terms

Financing solutions for Tennessee properties can be structured to fit a variety of investment strategies. Key features include:

• New purchase and refinance options: Finance both new acquisitions and refinance existing U.S. properties to expand your portfolio or unlock equity.
  
  
• Up to 70% LTV: Borrow up to 70% of the property’s value, keeping more cash available for additional investments.
  
  
• No U.S. credit score or income verification required: Approval is based on the property and its income potential, simplifying the process for foreign buyers.
  
  
• Flexible loan sizes: Loans can range from $100,000 to $1 million per property, with no limit on the number of loans, enabling gradual portfolio growth.
  
  
• Variety of property types: Finance single-family homes, condos, townhouses, and 2–4 unit multi-family buildings, whether for short-term rentals, long-term leases, or a mix.

Remote closings and everything needed to start investing all in one place

Investing in Tennessee real estate from abroad can be done entirely remotely. A digital platform centralizes all documents, approvals, and communication, reducing delays and allowing for faster closings without needing to travel.

In addition, all aspects of the investment process—from loan applications to property management—can be coordinated online, making it easier to stay on top of every step without being in the U.S. Our comprehensive Investor Kit bundles everything into a streamlined solution, including:

• Tennessee LLC formation: Establish a Limited Liability Company in the state to protect your personal assets and create a recognized business structure.
  
  
• EIN issuance: Obtain an Employer Identification Number to open bank accounts, apply for loans, and manage taxes.
  
  
• U.S. bank account²: Open a business checking account with Regent Bank without visiting the U.S., enabling smooth rent collection and expense management.
  
  
• Integrated foreign exchange capabilities³: Move money internationally, convert currency securely, and avoid hidden fees.

This all-in-one setup simplifies both the purchase process and ongoing management of Tennessee rental properties, making it easier to invest with confidence from anywhere in the world.

Start your Tennessee property search with financing built for foreign investors. Get started with Waltz

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