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Updated almost 5 years ago, 01/21/2020
Chattanooga, TN First Time Investor
Hello,
I am wanting to get started in real estate investing, have been for awhile. However, my market in Chicago is a bit crazy at the moment. Also, CHI just recently decided to get rid of the 5% down program which is crucial with the prices here. I have recently been looking in the Chattanooga market as I am originally (born and raised) from Knoxville, TN. I also have family and friends that live in the Chatt area. Was just recently in Chatt and was very impressed with the city. I am somewhat (not very) familiar with the area but do realize that Chatt is growing. Looking to make connections and build a team to hopefully jump in and hit the ground running.
I am looking for SFH or MFH to buy and hold for cash flow while scaling in the coming years. I would obviously need help managing the properties as I would still be in CHI. Browsing on Redfin it seems like there are options but once again, not familiar with the areas, schooling, etc. Just have hesitation while being removed from the market with minimal information.
Any help would be appreciated. The more connections the better!
Congrats on deciding on the market. Search through the old BP posts to find other locals in the area. Also, PM me if you would like me to connect you with a local wholesaler.
@Phillip Ballard I’m in a similar boat as you. I’ve been diving deep in market analysis and found out there is no “perfect” city and decided to focus on Huntsville AL only to find out after the fact that Huntsville doesn’t have much if any 2-4 unit properties which is where I want to start with my OOS investing. Chattanooga on the other hand seems to have some options in the 2-4 space and my goal would be to buy up 8-10 or so 2-4 unit properties and then begin to purchase some multi-family consisting of 20+ units. I would like to find a market I can stay in and accomplish both and I think Chattanooga fits that mold. I will definitely be visiting the area for a 4-5 day stint in the near future.
@Alina Trigub I can’t speak for Phillip but I would love some referrals if you have them.
Originally posted by @David Olson:
@Alina Trigub I can’t speak for Phillip but I would love some referrals if you have them.
PM me.
@David Olson when you come to Chattanooga. Be sure to look me up. Also o recommend coming on the fourth week of the month so you can work in our fourth Thursday investor happy hour it's a great place to meet other real estate people in the area. Usually 40-50 people show up.
@David Olson I understand completely. Doesn't seem like there is a "perfect" city at all right now but the overall trend of Chattanooga still seems to on the up and up, especially with VW. That with a combination of family/friends and being close to my hometown Chatt was a plus for me. I am in the same boat as you when it comes to MFHs, have mainly been looking at those in CHI but when it comes to Chatt I am open to multi-family or single-family homes as long as they cash flow. I agree that Chatt seems like a market that can be utilized long term.
My biggest fear/concern is that since I don't know the area extremely well is that I miss on the location.
@Phillip Ballard I know several people who own or have owned multifamily there in the past. You can also look at some posts from Nashville because a lot of those investors (that live in Nashville) invest either in Chattanooga or Clarksville as well.
@Caleb Bryant That is good to hear. Always a plus when you hear of people owning in the location you are investigating. Will keep my eyes open for others that may have property in Chatt.
@Phillip Ballard - Best of luck with your decision! Let me know if I can help in any way.
I work with the Robert Fisher Team here in Chattanooga. Robert’s expertise is in multi-family and apartment complexes.
Message me if you’d like to talk more about Chattanooga!
@Riley Kurtts Thanks! How often do you all see good deals on multi-family properties? Seems like the Chatt market has a few multi-family properties but not an abundance, could be wrong with that assumption. I am just in CHI where multi-family is so common.
@Phillip Ballard - I guess the “deal” is in the eyes of the beholder... Some people coming from other markets see everything in Chattanooga as a deal!
I’d say we have a fair amount of multi-family of all different types.
@Phillip Ballard I plan to visit the cities I will be investing in with Chattanooga being one of them.
@Riley Kurtts do you see many 2-4 unit properties around that area? I'm not opposed to larger multi and ultimately that is my goal, but I don't wanna bit off more than I can chew on my first few deals out of state. From what I see parts of Highland Park, Orchard Knob, and Ridgedale are prime for flips. Especially along Bailey Ave and McCallie Ave. For the record, flips are not my long term plan but if the right opportunity presents itself I would snatch it up just to create more capital to buy my next rental.
Still looking for areas where rentals are the sweet spot.
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@David Olson Chattanooga has a TON of duplexes. There are a lot of neighborhoods that are made up of nothing but duplexes. Most of them built 50s-70s. Low income tenants. Low income isn’t for everyone.
Originally posted by @David Olson:
@Phillip Ballard I’m in a similar boat as you. I’ve been diving deep in market analysis and found out there is no “perfect” city and decided to focus on Huntsville AL only to find out after the fact that Huntsville doesn’t have much if any 2-4 unit properties which is where I want to start with my OOS investing. Chattanooga on the other hand seems to have some options in the 2-4 space and my goal would be to buy up 8-10 or so 2-4 unit properties and then begin to purchase some multi-family consisting of 20+ units. I would like to find a market I can stay in and accomplish both and I think Chattanooga fits that mold. I will definitely be visiting the area for a 4-5 day stint in the near future.
I'm also sitting in this boat and after much thought and research am leaning toward 2-4 unit properties to get off the ground.
One of my ultimate long-term goals is to own property in Nashville so I immediately perked up when I saw your Chattanooga post. I'll be following your journey closely and also be looking at the area as part of my lengthy due diligence.
@David Olson - Yeah, buddy! We’ve got lots of them. Some great spots where multiple set next to each other as well. There is currently a great deal on 3 side-by-side duplexes off Booth Road... They’re priced to make money.
Message me and I’m happy to share more info!
@Luke Carl Any areas you would avoid?
@Riley Kurtts sent you a PM.
Good to hear from yourself and @Lucas Carl that there are a good amount out there. Not sure if low income would be my first choice as a first investment but if a good deal arises then it’s still an option.
@David Olson
Let me know when you’re in the area! Our office is on Brainerd Road and I’d be happy to meet up for coffee.
@Lucas Carl
There are also areas where duplexes may no longer be built. There have been many who have frowned upon duplexes due to the blight, poor management, etc.
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@Brenda Jean Adamson let me keep frowning. They make me smile :)
They can be the rain and I’ll be the parade
I live in Marion County, TN which is just outside Chattanooga. I am new to real estate investing as well, but the few local investors and real estate agents I've talked to say Chattanooga is expanding quickly. Particularly the Red Bank area.
Chattanooga is growing in several areas. It use to be that North Shore was the main place you wanted to be investing and it is still a hot market but other areas are increasing in value. Condos downtown and in North Shore are selling for as high as $330 dollars per square foot while distressed houses outside of town can be bought for as low as $50 sq ft. School zones do matter as most people with children want to be in Normal park or on Signal Mountain because of the great school systems. Chattanooga though has several great private schools though in Bright, Baylor, GPS and McCallie to name a few so I don't think it matters to everyone. I'm starting to flip houses in Red Bank but I'm also looking at the Southside, Hixson. Chattanooga geographically has some limitations on growth with Lookout Mountain and Signal Mountain that confine the cities growth to the west and the state line to south but even areas of north Georgia are great investment areas as you get more house and land for the money while still having a good rental income. Cleveland is also a great market and another area I'm looking into.
@Michael Burrows Thanks for the information. All great insight and things to keep in mind. I forgot how many solid private schools are in Chatt. As @Drake Payne mentioned above, I am hearing from my family in Chatt that Red Bank is kinda the hot area to be at the moment.
Yes Red Bank is a great area to be but it does have it drawbacks. Short term and vacant rentals are prohibited and Hamiltion county has ADU restrictions that are only allowed in downtown.
Hey Phillip. Are you looking for a property to put work into or do you want to buy something already rent-ready?
One of my best friends is a real estate agent in Chattanooga and I was just talking to her about three fixer-uppers they put under contract for a client of hers. They sounded awesome. She knows all of the areas and all that...Chatt native. Happy to connect you to her if you want.
I love Chatt! I'm from Atlanta and have spent tons of time there.