All Forum Posts by: Brian Levredge

@Jessica Lombardo, I am in that group.  I also flip, build specs, and a bunch of other stuff.  Also been in construction for over 25 years. 

I started my own PM company in Chattanooga.  In general your analysis is off.  To start with leasing commissions typically run 50% of one months rent. Then you have fees on top of that, some of which are hidden, depending on the company.  Point is it's actually more than you think when you add it all up.

That said 5% flat would be a very tough sell for only 20 units.  Happy to give you additional insights if interested.

Happy to connect. 

Nashville is not too dissimilar from CA markets.  It's expensive (relative to here) and there isn't much cash flow, if any.  Chattanooga and Knoxville offer better cash flow combined with appreciation.  I can put you in touch with agents in Chattanooga but not much help in the other cities. 

@Preston Humbard - lots of good investment areas around town that I've had success in.  Hixson, Red Bank, East Ridge, E Brainerd, Ooltewah.  Even N GA has good areas in Ringold, Ft Oglethorpe, and parts of Rossville.  E Chatt, Alton Park, East Lake are higher crime areas but will have lower cost of entry.  

@Thomas Meyer - Signal is a great area to live in.  Investment wise not so much.  Great schools up there and it's one of the safest places in the US according to the FBI (or was quite recently) but finding good investment opportunities is another story so be prepared for thin returns.  Signal covers two different counties so you want to make sure you're in Hamilton County.  Check the school zoning on anything you're looking at. 

I know nothing about Dubuque, but Chattanooga has a lot going for it.  TN has no state income tax.  You are two hours from Nashville, Atlanta, Huntsville, and Knoxville so plenty of larger markets within a reasonable drive.  Chattanooga has four distinct seasons, a vibrant downtown, a healthy job market, and a ton of outdoor activities.  

There's a BiggerPockets (unofficial) meetup group that was getting together the fourth Thursday each month, pre-COVID.  I think they are wanting to get that going again, but not 100% on that.  @Kelly Rastatter can provide more info since she runs it.  There are plenty of resources here in Chatt that are both virtual and in person.  Maybe the easiest way to find them is to go to FB and search "Chattanooga real estate investing"  That will pull up a number of groups that are getting together at different times.  I'm also happy to meet and discuss with anyone making the jump as I moved here from Los Angeles eight years ago (started investing here in 2009) and it was one of the best decisions I've ever made. 

Is this for buy and hold or spec?

I think your biggest risk with STR in Chattanooga is them changing the zoning/allowance to do so after you've purchased. There is currently a movement to do this in the 37404 zip led by the Dist 4 (I think) Councilwoman citing a lack of affordable housing that STR's contribute to by taking them out of the LTR housing inventory. I personally don't agree with this logic, but that's what's happening now, and no idea if it will pass. But if it does pass and you purchased based on STR returns instead of LTR returns then you may be up the creek. My only suggestion would be to look at the same property from a LTR perspective and see if that's a ROI you can stomach if that's what it came to pass.

We do.  Feel free to PM me.