Since I still have a lot to learn I did not know about that so thank you for the advise.

That does help a lot and it gives me a lot to think about. 

I'm trying to tag both Joes, but it combining them...Anyway, you've both given me a lot to think about and I appreciate that.  

Along w/ the military (essentially recession proof) and our tourism, Biotech & our downtown is set to explode via numerous development projects. 

And am now active in syndications.It has a lot to do with your investment goals and how much time you have/want to put into real estate what ends up being the right investment for you.

@Stephanie CessnaYour realtor friend may have some insight as to what you can potentially do with the home + lot (build home in adjacent lot, knock down existing lot to build XYZ, etc.).If you are planning to do any development with a variance you could ask your realtor + attorney to  add contingencies where sale is contingent on XYZ plans approval by the town however this may not be a quick sale then for the seller.

There is a lot to learn and each state/county and sometimes city differ.

That’s a forced value creation that will far exceed any appreciation you can hope for or any cash flow you could potentially extract from just a a single family home.Plenty of opportunities here: (1) sell the lots to raise cash and pay off your loans on your existing house to get free and clear property for a long term hold, (2) Sell the front house keep the lots for long term appreciation (they will appreciate at the same rate as houses nearby), (3) Trade a lot to a builder to get him to build a small home on the back lot for you at a very low cost, (4) Sell some of these lots with owner financing for cash flow...

It seems to me, that what you originally wrote, tells me you are the one that has a lot to learn. 

Chattanooga has a lot to offer, especially for a single family flip!