New Investor Looking to Build My Team in Chattanooga, TN

[Nathan Kapusta]

Hello all,

I'm Nathan, I live in southern California. My brother and I are looking to invest in Chattanooga, TN because my parents live there, and can help us with scouting properties and maybe even property management. We're looking to start out with single family or small multifamily properties, probably under $200k budget. I was wondering if I could ask for some guidance on where to find advice on whether we should form an LLC between my brother and I, and where to find an accountant - and should these be in CA or TN? Anyway, any and all advice is truly appreciated! Thanks in advance!

[Nathan Kapusta]

Originally posted by @Keith Rocha:

Hey @Nathan Kapusta, Chattanooga is a great place to invest. A lot of out of town investors are choosing Chattanooga. The market is really competitive at the moment. Lot of cash offers. Many above ask. As far as forming an LLC goes you'll want to be aware of the franchise tax that we deal with here in TN. You pay a tax on the value of the real property if you put it in an LLC. "0.25% of the greater of net worth or real and tangible property in Tennessee". Something you'd avoid if you and your brother just owned the property in a general partnership. Definitely, discuss with a CPA as I am not one.

Thanks Keith! Yeah I know everywhere is crazy right now. Near me in CA, houses are going on the market Friday and reviewing offers on Sunday at 5-10% over asking. I'm patient though! I don't have to do anything till I find a deal that makes sense. Even in a crazy market, it looks like there are still good cashflowing properties out there in CHA.