Chattanooga Main St. Investments - Fish in a Barrel or Bust?

[Mark Cadle]

Investment Info:

Single-family residence buy & hold investment in Chattanooga.

Purchase price: $250,000
Cash invested: $13,226

Great location walking distance to all the entertainment South Side and Main St has to offer! All mom and pops shops & restaurant. Music shows every day of the week in this up and coming area. Wired for The Gig City, watch the sun rise over the Downtown Skyline. Walk across the street to Mean Mug for a quick coffee and breakfast. Head to Clydes next door for a great sandwich. Breakfast, Dinner, Lunch, Brunch, Happy Hour, Dog Parks, Music or just a nice stroll to start or end the day. Super dog friendly with trash and dog bags on almost every corner! Easy access walking or driving to downtown. Plenty of non-metered parking!

What made you interested in investing in this type of deal?

As silly as it sounds I kind of followed the leaders here. Marriott has a chain of 7 new "feature" hotels in the world targeting Millennials providing social environments on the main level and tiny hotel rooms. Turns out one is being built in the downtown area off Main St. in Chattanooga. I figured they knew what they were doing as well as the 6, I think, new apartments building built and 1 $400k+ condos going up. Investors abound trying to renovate and rehab this area. I just followed...

How did you find this deal and how did you negotiate it?

I found this deal on Zillow but only because my realtor and I lest out Condos from the listing. I found a few for sale but this was the one of two units with a skyline view. There was no negotiations, as much as I tried. I probably over paid and this could be a loser but I think with the area being developed this is an appreciation play based on Marriotts old saying, Location, Location, Location.

How did you finance this deal?

Conventional.

How did you add value to the deal?

The value added to this deal is the constant updating and renovation going on all around this block. New restaurants, new buildings, demolition older buildings, a walking city for anything you need. Coffee, Music, Alcohol, Festivals, Breakfast, Dinner, Downtown, Banks, Schools.

What was the outcome?

The outcome was me and my dog moved in and my neighbor across the hall was also a real estate investor. It has been great!

Lessons learned? Challenges?

Well not sure I could pass along any tips at this stage. This will be a sort of hind sight is 20-20 thing I think.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

David Shipley