Recent visit to Chattanooga and not sure what to think.

[Matthew Swearingen]

Last week I went to Chattanooga and mainly looked in the 37404 zip codes. Im from Sac CA. I could not believe seeing a home that looked like it was falling apart, couch in front hard and then a house literally next door that was probably like this dump rehabbed and selling for over 200k. And then on the same street 3 more homes being rehashed next to a dump, etcetera. Some were sold, rehashed and turned into Airbnb. 

When I did real estate in Sacramento, it was entire neighborhoods that were constant as far as condition. I was ready to buy a couple of them. Agent gave me comparable and all the data. It seemed many opportunities to buy, fix and flip. For example tere was home on the exact street i mentioned next door to 2 nice Airbnb, and home next door that wasceehabbed and lusted for $225k. This home was in,bad shspe and asking 49k. It was a triple 3/3 each with own electric meter. Front unit rented, and 2 other units not habitable 2400 as ft.  Agent says if I got it for even asking price of 49k I should just do a complete renovation. Put 80 to 100k. So know I'm in for say 150k. Based on square footage and 2 cute homes on either side I could sell conservative for 250k. Based on those number with 20% down I'm,walking away with a nice profit. Am missing something?

I have never seen people rehabbing or putting in New construction next to a distressed home. Typically you avoid cuz it brings down the value of the nicer home. I left Chattanooga more confused. Yet it appears investors are fix flip, Airbnbing these rehab, ect.