Old Hickory, TN · Member since 2012 · 31 posts · 6 votes
I'm currently interested in SFRs in the Chattanooga, TN area and very interested in neighborhoods with good value. Several old threads have outlined good areas, but all are dated by now. Curious if anyone has any recent perspective on this. Thanks in advance.
Investor · Chattanooga, TN · Member since 2009 · 1k+ posts · 903 votes
7y
Prices are up across the board in all sub markets here. Value can be found in all of them but it generally requires a boots on the ground mentality or good contacts passing deals along. While inventory is up over last year at this time it's still well down below the levels of a couple years ago. That combined with the fact that Chattanooga is gaining more traction nationally means there's a lot more competition.
That said the lower rent areas are East Chatt, East Lake, Alton Park, Highland Park (outside of the Highland Neighborhood Association). You're typically 750-900/month in rent for a three bed house. Prices are up so you're generally looking at 50-80k for a house that doesn't need much work.
Middle rent range areas are East Ridge, Hixson, and Red Bank. You can get about 1000-1500 or so for a three bed depending on neighborhood. This is kind of the sweet spot in town rent wise. Short vacancies and stable tenants. Plan to pay around 100x rent in these neighborhoods, at least right now.
East Brainerd and Ooltewah are the upper middle to upper rent areas. There are pockets where the rent is lower but you're generally looking at 1300-2000 for a three bed, depending. The public schools in these areas are more highly regarded so values are higher. Expect to pay a premium, which doesn't help a lot from the investment perspective.
The high end would be Signal Mountain, Lookout Mountain, North Chatt, and Riverview. Those are high, high demand areas for purchase so finding a rental is very difficult, especially one that makes sense financially.
Investor · Chattanooga, TN · Member since 2009 · 1k+ posts · 903 votes
7y
Prices are up across the board in all sub markets here. Value can be found in all of them but it generally requires a boots on the ground mentality or good contacts passing deals along. While inventory is up over last year at this time it's still well down below the levels of a couple years ago. That combined with the fact that Chattanooga is gaining more traction nationally means there's a lot more competition.
That said the lower rent areas are East Chatt, East Lake, Alton Park, Highland Park (outside of the Highland Neighborhood Association). You're typically 750-900/month in rent for a three bed house. Prices are up so you're generally looking at 50-80k for a house that doesn't need much work.
Middle rent range areas are East Ridge, Hixson, and Red Bank. You can get about 1000-1500 or so for a three bed depending on neighborhood. This is kind of the sweet spot in town rent wise. Short vacancies and stable tenants. Plan to pay around 100x rent in these neighborhoods, at least right now.
East Brainerd and Ooltewah are the upper middle to upper rent areas. There are pockets where the rent is lower but you're generally looking at 1300-2000 for a three bed, depending. The public schools in these areas are more highly regarded so values are higher. Expect to pay a premium, which doesn't help a lot from the investment perspective.
The high end would be Signal Mountain, Lookout Mountain, North Chatt, and Riverview. Those are high, high demand areas for purchase so finding a rental is very difficult, especially one that makes sense financially.
Rental Property Investor · Boston, MA · Member since 2016 · 61 posts · 18 votes
7y
Thanks @Brian Levredge, I was interested in Chattanooga some time ago and made a trip last year to explore and check out the neighborhoods and seems like you are reflecting a lot of similar sentiment to numerous other people I was able to speak with. How do you think that the market's proximity to Georgia affects the market compared to other Tennessee markets. Also, for someone out of state, interested in relocating, would networking and mailers be the most effective approach to finding a deal? Currently I am checking the MLS and have found several interesting properties in the past but did not have the confidence to follow through. Thanks for the knowledge!
Investor · Chattanooga, TN · Member since 2009 · 1k+ posts · 903 votes
7y
@Christopher Kolasa, we're about the same distance from both Nashville and Atlanta so we get investors from both looking here due to being priced out of their home markets. Chattanooga is a tertiary market but it's healthy and drives itself. There are a number of different sectors here that seem to be thriving. Combine that with the low cost of living and you see why we're gaining popularity. So while prices have come up a fair amount the million dollar question is what kind of adjustment, if any, will we have. More likely we'll probably continue to come more in line with national averages.
I moved here six years ago from Los Angeles not really knowing anyone outside of a couple realtors. If you are relocating I would recommend just networking your tail off. Otherwise, find the wholesalers and other investors doing the bulk of the deals and network with them if plan to remain out of town. Mailers work but if you are out of market you'll need someone working everything for you locally.
Investor · Chattanooga, TN · Member since 2009 · 1k+ posts · 903 votes
7y
@Shadonna N., my partners and I all are investors and ended up starting our own PM company four years ago to manage our portfolios and those of others. Like anything else, the experience with PM companies runs the gamut. There are good and bad and in between. Also depends on what you niche you are in. There are some that only do single family res or others that only handle certain parts of town.
Rental Property Investor · Boston, MA · Member since 2016 · 61 posts · 18 votes
7y
Hey @Brian Levredge do you have any great real estate agents that you are able to refer? Also, in terms of property management, do you deal with small multi-family clients or larger scale?
Investor · Chattanooga, TN · Member since 2009 · 1k+ posts · 903 votes
7y
@Christopher Kolasa, I'll send you a PM with a couple names. As far as we are concerned my company manages just about all asset types. That said we are looking to work with investors who will have more than just one property. We can work with just one to start but want to see a commitment and plan to a small portfolio.
Investor · Chattanooga, TN · Member since 2009 · 1k+ posts · 903 votes
5y
@Greg Westerfield, Jr., Washington Hills is an ok area. I don't love it for several reasons. First, the homes are generally in the 50+-year-old range. Not terrible but you'll be dealing with things. Second, while that area is a decent pocket itself (older residents that keep up their homes, on average) it's surrounded by some areas that aren't decent at all. There are a lot of areas that are gentrifying rapidly downtown and that's pushing a lot of lower-income residents out of that area. Most seem to be going north to the Hwy 58/Bonny Oaks/North Brainerd areas. So the question I have is what happens to those areas longer term? It's not a guarantee that it declines per se but as someone who lived out off 58 for five years, I can say I'm glad I'm not out that way anymore.