All Forum Posts by: Brian Levredge

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.  

We own and manage all over town, including condos. If your price point is about 2k you are probably best served putting it on the MLS as most of the people that can afford that rent are often going to become buyers and will be working with an agent already. Often, you'd be looking at one month's rent as a commission between both agents, assuming you are represented by one.

My cosmetic rehabs generally include the following scope: floors, paint, new fixtures (electric/some plumbing), knobs/hinges, and cabinet refinishing+hardware.  We generally accomplish that for around $15/ft.  Though with inflation I would buffer that some.  

Roofing replacement will run about $300/square though that doesn't include an allowance for decking replacement.

On the electrical you'll probably need to either replace the panel or upgrade the breakers to arc-fault and then ground out the outlets.  That's probably about 2k.  Fyi wiring a house up (assuming studs are exposed) is around $7/ft plus the cost of light fixtures. 

Replacement windows should run you around $400/opening, installed

Vinyl siding for that should run about 3k or so.  Fyi if you have asbestos siding, leave it on and just go over it with the vinyl siding.  

We manage a fair amount of property in NGA in addition to Chattanooga.  Demand has still been really, really strong with multiple apps on properties that are well located and priced.   

@Cody Gagnon I usually go the multi family and more meetup as well as the local BP meetup when my schedule permits. Congrats on the move, and welcome to Chatt!  It's a great market and even a better place to live.  Let me know if there's anything I can assist with.