All Forum Posts by: Brian Levredge

A bit of advice for @Michael Hooper and @Amber Goins. I own a PM company in Chattanooga and have for the last seven years. Wanting to do it for other people is great in order to generate additional revenue but (and there are a million different ways to go about it) it becomes a lot of work at a certain level. Even staying small requires a fair amount of time, etc. You both may be able to find a friend or someone who you may know that could let you hang your license under their brokerage. There is considerable risk to them in doing this though. It can drastically increase their E&O insurance as one example. There is also a lot of liability and risk of audit if someone files a complaint against you. Your record keeping needs to be pristine as well and even doing all this, and operating inside the legal boundaries you will still get sued. At the end of the day, you could be trading one job for another. I'm not saying don't do it. It does have its own rewards as well. Just make sure you are taking in as much information as possible when making the decision. Spending the time and money getting the license, plus future MLS costs, etc. all adds up to quite a bit if you aren't really serious about doing it.

We manage a lot more than that in the Chattanooga and N GA area.  I'm an investor in those markets as well. 

Thank you, @Brian Moore.  @Brandon Harrell-Abbey, I'm happy to put you in touch with the right people if you want.  Feel free to DM me. 

There's not a lot of delta between those areas anymore.  In no particular order: East Ridge, Hixson, Red Bank.  You could add Ringgold, Fort Oglethorpe, and parts of Rossville as well.  Those three are all in N Georgia but are effectively a suburb of Chattanooga.  

Red Bank probably has the most upside due to proximity to downtown and gentrification.  East Ridge is a border zone, with sales tax revenue being rebated to the developer over 20 years so the commercial landscape in East Ridge is changing considerably and that will drive the residential as well.  

To add to @Andrea Hardaway's post it also depends on what type of property it is.  Demand for workforce housing is really high.  That's typically $700-$1200/month range.  So on apartments and duplexes in that range, we're getting multiple applications in a matter of days often.  But even that is subjective to a degree.  Nice units in C-D areas trying to get a premium can still sit for weeks just because of the area and because those areas often have a smaller pool from which to attract quality applicants.  

As an owner and operator of multiple apartments in the area rent rates really matter, especially on value add projects since higher rents generally = higher NOI and thus command a higher value. So on those, we will hold out (as long as we're getting traffic) for people to come in at the right rent price when trying to refi within the short term.

Houses, otoh, don't have that issue.  Their value is from comp sales so you have more flexibility on rent.  Sure everyone wants to get the max, but if you have to give up $100/month in rent to get it gone in a week or two vs holding out for a higher number that causes it to sit for weeks long and thus really offsets the potential rent gain due to vacancy loss.  

Been investing in Chattanooga for 12 years now.  Live here, and own a PM company in addition to building specs, and flipping everything from houses to apartments.  It's generally hard to go wrong in most submarkets here.  There are a few zips I would stay away from but even then I know investors who have good-sized portfolios in those zips and do quite well.  Just isn't my cup of tea.  

Depends on how you purchased the property. If you paid cash, you have more options than if you financed the purchase via conventional or other loan. HML's will want a first lien position, so if you have financing in place already you need to look at a refi that gives you the extra capital you need to pay for the rehab while replacing the original loan. Putting the money on a CC, while attractive from a mileage standpoint, could drop your score if you max the card out enough that it affects the rate on your refi. That's in addition to the bank counting the CC payment in your global DCR as well. If you have plenty of cash on hand and can pay off the CC then those concerns mostly go away.

@Tom Saysithideth, 

AFS might be an option for you, though they are pricey.  They specialize in foundation repair, stabilization, etc.  

Biggest thing to look out for in Chattanooga is flooding or water intrusion (we're in a river valley) and avg 55" of rain per year.  Somewhat related is tree damage from rain or wind.  Last is tornados.  We usually get a bad one(s) here about every ten years that do extensive damage.  We are at elevation somewhat and surrounded by mountains.  So it's generally hard for tornados to get in, but once they do it's hard for them to get out so they keep bouncing around.  We had an F3 hit the East Brainerd area in April 2020 and it wreaked havoc.  

I'm in Chattanooga.  I build specs, flip SFD and small MFDs, own a PM company and doing commercial and multifamily investing as well. 

@Amber Goins, If you manage properties for clients you have to have a broker's license (or at least be operating under one) in TN.  The exception to that rule is you don't need a license when you have an ownership interest in a property.