All Forum Posts by: Ryan Stahr

It depends on the area of town - in the C and D class neighborhoods, I'm getting 12-14%.  but even if I calculated Cap Rate on our B class neighborhood rentals, I don't think it'd ever be less than 8-10%. 

That's strong enough cash flow for my business. But I don't buy turnkey - I exclusively buy distressed and clean them up. I also work with the Chattanooga Housing Authority and government agencies there very closely so I can get better stabilized tenants and returns. 

@Ali Boone Are you saying cash flow properties in Chattanooga are hard to come by or that the market doesn't support strong cash flowing rentals? 

I invest out of my home town (Nashville) in Chattanooga. I've seen success in value add properties there. The rental market has also been strong for me. 

Get a copy of your HOA terms. If there are any restrictions on renters in the building or other non owner occupant uses, they will be defined in the HOA regulations. Whomever manages the association can provide you a copy of these terms.

There could be restrictions if the building wants to maintain a certain percentage of owner occupancy - government mortgage entities (e.g., fannie/freddie) won't guarantee new condo mortgages if owner-occupancy in a building falls below a certain percentage of total units in the complex. That's your largest risk when it comes to renting it. The HOA could push back.

National Real Estate Insurance Group is easy and a national company. 

@Taylor Cochran if you are the primary resident of the house, they do allow you to AirBnb. It just requires a type 1 permit vs. nonowner occupant types 2-3 (the ones that are being phased out).

You should be focusing on learning your back yard. Chatt is a great place to build a rental business and there is a variety of options available to you. I wouldn't try and jump out of town just because you don't see any turnkey providers there. I have SFR's, duplexes, and a small commercial (5 unit) building in town that span from red bank to east ridge - you can find deals in a variety of price ranges and property classes.

@Jeffrey Holst what bank did you work with in Chatt? Did they give you a good interest rate? I just started a refi on a 5-plex in chatt but the interest rate for me has gone up to 5.5%

@Kurtis Montgomery has that sold? I didn't see it come through my email from BJ. can you send me details?

Google "Taylor Made Plans" and go to Taylor's website. Request a quick phone call consult and she'll tell you what you can expect to pay to build the utility workshop and if she thinks you could build a shed/apartment. 

The zoning may be industrial but land use and other factors will determine whether you can build an additional dwelling, whether that is a house, garage apartment, w/e. If you want it to be hooked up to sewer and city electric legally, Luka is right - you'll need to pull permits and then you'll get hit with sidewalk fees. 

Just go to codes and ask if you can build an additional dwelling. It'll probably take an entire day of your time but that's how you find out for sure. 

If you are in Davidson County, you either have to build them on land that is zoned for mobile home use (and they would need to be mobile - not permanent foundations), or you'd have to build them as an accessory dwellings to an already existing structure (i.e., on land with a dwelling already that is zoned for multiple dwellings).

I talked to codes about this because I wanted to build one on my lot (.25 acre with a SFR on it) but the zoning is RS10. They wouldn't allow me to build out an actual second dwelling. Parking a mobile tiny home on my lot also would violate codes if someone lives in it (had a friend get one shut down for this).

the tl;dr is they are cool -  I'd love to see more of them if they are done right, but you'll be fighting a zoning and land use system that hasn't caught up. As far as the city is concerned, they are just smaller houses that should follow the same rules as a normal house.