All Forum Posts by: Brandon W Panganiban

Hello everyone local Chattanooga newbie here. While trying to develop several lots in the city, I came across a BRRR opportunity on a SFH so jumped on that too. First one for me. Cash purchase with hard money to refi with conventional later. Can someone with more experience confirm that banks around here do drive by appraisals? I have enough meat on the bone to make the interior fancy too but if the appraiser is never going to go inside the house that changes the details of the interior for me. Honestly don't know if TVFCU went inside when I bought my primary residence in 2015 and, well, that's 6 years ago.

I think you may need to hone in your needs a little more. How long are you planning on living here? Are you looking to be an investor or homeowner so you can focus on your career? Probably good idea to get with a realtor. There are several nice areas with easy access to downtown as there are 4 highways that converge. Being the scenic city, there is ample access to outdoor activities in all areas. Every neighborhood is appreciating. There are plenty of contractors doing work. They're not begging for your business but you can get anything done you need to as long as you don't need it today. If I was thinking of living here for less than 10 years as a single family homeowner, I would put some serious thoughts into being a renter. I'd have concerns of buying high, then moving back home or to family or to next job and being underwater when I wanted to sell my house and losing a lot.

@Peter Nikic I'll DM you

Great info in this thread. I wanted to add some Chattanooga specific stuff for 1950s houses in my neighborhood which is East of the city. 

Rough cut lumber is common here in the 50s which is awesome IMO as the homesteads were converted to suburbs. It's really sturdy by now, nearly impossible to drill a hole through strength. The structurally bad part is that we have small, unnoticeable earthquakes all the time and the basements then didn't have rebar, adequate thickness, or good footers. Between that and the swelling effects of high clay content soils there can be very expensive issues. I like crawl space houses here for that reason unless I'm living in it and want the extra tornado protection.

Regarding the wiring comment, yes you can just run the grounds together because they go to the same place ultimately but there aren't enough outlets and the wiring is fiberglass insulated and by now has crumbled away in this climate. Having the glass fuse panels replaced, adding outlets, and pulling new wire is imo the biggest expense with the 50s homes here for a flip. Full basement and open attic does make that easier. For LTR who cares two prong is fine.

The popular roof style was a very shallow pitch and we do get snow. Estimate higher than normal capex for roof.

Interior of the ones I've seen are horsehair plaster with a textured finish. I think it's neat because you'll never see that again but it's way outdated no one likes it. Depending on the class of home you're looking at it could be a factor. Seems easier to slap 1/4" sheetrock right over it then try to mud the whole house top to bottom.

Termites are definitely a thing here. This is where pre 70s is advantageous. The chemicals used then to treat the block basement walls are way beyond banned now. Those basement blocks are a barren wasteland.

 Chattanooga would fulfill all those. That is a very similar list to mine when I moved to Chatt in 13' from a colder climate. I would argue that for hiking/biking Chatt is the best US city east of CO. Rapid population growth since 15/16 has depleted the abundant grand slam deals there used to be but it's still very good for LTR. Newer investors I've talked to here seem to have the best luck with duplexes. They seem to be less on the radar from out of town investors.

@Max Amillion I would probably try to check with other investors in your investment location to see what brokerages are popular. As everyone else has said they seem to be unbeatable. I've had to make a total loss home claim with a brokered policy and had a very easy time. Especially relative to others with more well known insurance companies who had to fight tooth and nail. 

@Peter Nikic Cornerstone Insurance Group is a major brokerage here with a brick and mortar in Chattanooga and Cleveland. I do my personal stuff, business stuff, and investments with them. I can get you an email of someone that handles whatever type of investments you have here if you'd like.