All Forum Posts by: Jennifer Dixon

I called down to my records dept and signed up for a monthly service to be able to look this up. 

Hey Malinda! I am an Investor focused agent here in Chattanooga and I host a small meet up on a monthly basis (usually in Ooltewah area). Would love to connect!

Hey ya'll! i'm a pro member with access to the rental estimates. I've noticed BP rent estimates are usually under the rentometer rent estimates. Which do you think is more accurate, an avg of the two? BP? I tend to tell my clients a range using the two but i'd be curious to know other folk's thoughts. 

Since the pandemic, more folks have been allowed to work remotely so I know, at least in my market (here in Chattanooga, TN) we've seen a massive influx of remote workers coming in for a month to 3 or even 6 and then moving on. I havent ever sat down and thought specifically about MTM criteria but what I know about Chattanooga is there is a decent mix of proximity to different metropolitans (we are 2 hrs from ATL, BNA, KNX, Birmhm, and just over 3 to asheville. Since being lose to employers aren't the big requirements anymore, i'd look for the social aspect. Like Chatt has a huge outdoor scene, so we have insane eco tourism, we also have the fastest internet in the country so that brings tech folks to us, and we have an influx of manufacturing in the last decade and some change. Point is, I would look more at the social aspects of your city-- or heck, shameless plug, come check out my town! I love it. :) 

Hi Candace! I'm in chattanooga too (so we should meet up!) Have you considered a hard money loan to help you do the work? Granted, this will only work if you're planning on doing rehab--however I know of a HM lender that does/will help you subdivide and build, so that is also an option. 

If you do rehab - don't be totally afraid of foundational issues - folks love to tuck tail and run but often it's not that bad. Def have a good gc go with you to determine if it is "bad" or if it's just a few beams that need to be supported. 

Be aware to do mf- chatt can be sort a stickler with zoning. Depending on where your grandmother's place is, you may have no problem at all changing zoning or it may never happen. Plus, you're at the mercy of city commission meetings etc. OH! To get a survey--goodness gracious- you'll by 6-8 weeks out. It'll likely be 600-1200 per lot for survey and division (I did this with another client last year). Surveyors don't get in a hurry and they know there aren't many in our area so they price themselves accordingly.

Hit me up with a dm if you want to talk more.

I have a great GC that I partner with fairly regularly - it depends on the deal to be completely honest, and how much equity there is involved. GC costs are 25-30% over their sub costs (my husband is also a contractor, so we leverage out by using my husband on some deals and our friend and GC on others.) Point is, if you trust the gc, and want to be able to do more deals, why not? 

Is it more complicated, yes.

Are there risks, yes.

Can it help you do more deals? yes.

Is it worth it? Only you can answer that, but I have successfully done a few this year and it's worked out fine! I am all about relationships and multplying my cash right now while we can so it makes sense for my strategy.

Where in Tn, Ga, and AL are you? That's where I am! 

Hey Bryan!

First of call, good job on getting started! That's the hardest part. 

Secondly, remember, you "marry the house" not the interest rate, so although you may not cash flow a ton right now, when interest rates do go down, you can always refinance and then you'll cash flow more. Plus you'll have the benefit of appreciation, possible tax benefits (depending on your situation, of course), and rents, like house prices tend to go up over time, so while your payment will be the same and possibly less, over time, your rent will go up, so keep those things in mind.

finally, I recommend asking your realtor to look for off market / wholesale properties. Even as a newer investor, you can still get into a wholesale deal (which is typically significantly cheaper than properties on the mls). It takes a knowledgeable realtor, and a good team, but i know you can get much better prices for wholesale deals and that helps sweeten the cash flow since you'll have a lower price point to get in your property.

For ex; I have 3 properties going right now. 2 were wholesale and 1 was retail. The retail was a class b and will likely have the smallest "juice" ie equity captured, but I loved the area and I did it as a JV so less cash out of pocket - but the idea is that appreciation. The other two properties 1) class c and 1) class b+ will be flips - both of those were wholesale deals. I plan on flipping those and the equity was awesome - but only bec they were wholesale deals - had those been on market deals I never would've been able to get them (competition is really high here) and that competition would've raised the price too much. Point is, you can get any class in a wholesale transaction (which does have more/different risks) so I recommend looking that route if you can.

Hey Andre! Welcome to TN! I'm in Chattanooga (ab 2 hrs east of you) but I'd be happy to help / brainstorm / collaborate. I also have a friend and fellow realtor up in Nashville that is investor friendly that could probably help you find some deals. hit me up with a dm when you get a chance!  

Good luck,

Jennifer

It depends. I had an appraiser tell me that if the adu shared a roof line (even if it's a covered walk way) and it was above grade, it would be considered same value as the rest of the above grade portion of the property. If it was completely detached and separate roofline, then (at least here where i am in TN) the appraiser said it would typically be 50% the cost to build (which flabbergasted me then too). 

I had a deal like this late last year (2022) where the ADU was almost as big as the primary residence, over an expansive 3 car garage and workshop and the buyers (whom I represented) were appalled at the lower than expected appraisal. We were able to work with the appraiser some but they did end up having to pay more cash out of pocket than expected.

would you be listing this as a FSBO or with an agent?

I personally wouldn't recommend this strategy bec buyers look at Days on Market (DOM) and they have no idea if you listed it 90 days ago in that condition or in its current condition. It doesn't seem like the best way to sell a property, IMO.