Investing in Chattanooga, Tn

16 Replies

@Tyrel Holman Chattanooga is a great market for small multi families and multi families but like most markets the prices are going up and great deals are getting harder and harder to find. We do have a great Community locally and there are several real estate investor events most months if you do end up here make sure you check out the BiggerPockets meet up the fourth Thursday of every month.

@Tyrel Holman  Multi family complexes that are on the market have pretty bad cap rates. 

City taxes are way worse than county but still not crazy like a lot of other cities. Single family is tough right now. We have a lot of interest from out of area investors and our prices are higher and higher.

I will say, I moved out to Chattanooga less than a year ago and I absolutely love this big little city! It's a great place to live and I have no regrets about moving.

Chattanooga is pretty much the best place to invest! Strong cash flow, affordable houses, and out of state investor interest contributing to appreciation. There is strong job growth, and a large employment base make this one of the best small cities to invest in. 

@Tyrel Holman hey there, I am a solo agent with Keller Williams and a multi family investor myself. I just bought my first 6 doors in one transaction for $210k. If you have the capital to buy and conduct rehabs on somewhat distressed properties with deferred maintenance and sub-market rents then there is a lot of upside potential to making improvements and raising rents/extracting equity to move on to the next.

This is my investment strategy and it's also an area in which I love working with other investors. Let me know if I can help!

@Dakin Cranwell I'm looking to leverage the BRRRR strategy in Chattanooga and lowering the barrier to entry within the first two deals. I see there is a decent pool of somewhat distressed single family homes that can be BRRRR'ed for cashflow, but not able to find a whole lot in the way of 3-4 unit multi family properties. My strategy is to collect 10+ doors that cashflow at around $250+ with a CoC ROI of 12-15%.

@Wsam Mahmoud I'd say that your COC ROI percentages are not asking for the moon in this market. As always, it comes down to your own ability to find good deals! I just purchased a SFH for $18500 here with an after repair value of $140K. It's got termite damage but it's still going to work out. I found this through scavenging for the good deals and passing up on a lot of stuff...

Anyways, to your comments towards Multi-families as opposed to SFH it's just a matter of inventory and zoning. There are only about 45 active multi-family listings in the greater Chattanooga area right now. This is slim when compared to offerings of SFH. Again, to find them I recommend becoming intimately aware of zoning and use codes. I sometimes find properties that are zoned R-3 that might have the ability to build more rentals upon later.

In any case, I'm here to help.