Price Points for Chattanooga Flips

[Daniel Walker]

BP Team,

My biz partner and i are looking at a possible flip/BRRR or two in order to gain additional capital for more rental buys. Two questions for the team:

1) what sub-markets/neighborhoods are looking ripe for SFH flips/BRRRs?

2) What price point (buy, renovations, ARV) is looking good for this strategy in Chattanooga in the near-term?

Thanks in advance.

[Adrienne Green]

Hi @Daniel Walker! The Chattanooga market is a great one to get in to! First, I'd note that BRRRing and flipping are two different animals in terms of investment strategy, so be cautious lumping them together. If you are looking to gain capital, then flipping is the way to go. If you are looking to build your portfolio with minimal capital outlay, then you'd BRRR.

In response to your questions, (1) all of the Chattanooga market is a green light for flips and BRRRs.  I generally try to stay within a half hour drive time of downtown, just to ensure demand.  (2) Median sales price is around $325k, so if you're at or under that, then you're in the cheaper part of the market, and demand for selling a flip should be good.  

[Donte Lee]

Hi, I'm new to the chattanooga area as of 2 months ago.  I've done 1 flip, 1 live and flip and I own 1 rental.  Im looking to partner with someone in the chattanooga area.  

[Benjamin Bleasdale]

Quote from @Donte Lee:

Hi, I'm new to the chattanooga area as of 2 months ago.  I've done 1 flip, 1 live and flip and I own 1 rental.  Im looking to partner with someone in the chattanooga area.  

What are you looking for?

[Jeff Costa]

Quote from @Donte Lee:

Hi, I'm new to the chattanooga area as of 2 months ago.  I've done 1 flip, 1 live and flip and I own 1 rental.  Im looking to partner with someone in the chattanooga area.  

Same question as Benjamin. What are you looking for in a partner?

[Brian Boyd]

Lots of opportunities in the Chattanooga Market, especially the River to Ridge Opportunity Zone.

[Rik Hunter]

Quote from @Brian Boyd:

Lots of opportunities in the Chattanooga Market, especially the River to Ridge Opportunity Zone.

 First time I'm hearing about Opportunity Zones. Found a 2019 noogatoday story, but it looks outdated. Where can I learn more? I found:

https://www.sedev.org/opportun...

https://opportunitydb.com/fund...

https://noogatoday.6amcity.com...

[Donte Lee]

Quote from @Benjamin Bleasdale:

Quote from @Donte Lee:

Hi, I'm new to the chattanooga area as of 2 months ago.  I've done 1 flip, 1 live and flip and I own 1 rental.  Im looking to partner with someone in the chattanooga area.  

What are you looking for?

 I dont have a whole lot of capital at the moment but I'm looking to add what capital I have to someone's project.  I also do tile work and drywall.  I'll help wherever I can.

thanks

[Oscar Zendejas]

For BRRR property, I generally look for a minimum 50% COC after the Refi. I have a spreadsheet I would be glad to share. Let me know if you need any contractor contacts for project you have coming up.

I have a value add Triplex in Rossville GA available. 15 minutes from Chattanooga. Message me for more info.

Best Regards

[Kaylee Walterbach]

Quote from @Adrienne Green:

(2) Median sales price is around $325k, so if you're at or under that, then you're in the cheaper part of the market, and demand for selling a flip should be good.  

@Adrienne Green Great info, thanks! I'm curious about the typical bedroom/bathroom makeup for the median sales price? Is a 3/2 reasonable at $325k?

[Kaylee Walterbach]

Quote from @Rik Hunter:

 First time I'm hearing about Opportunity Zones. Found a 2019 noogatoday story, but it looks outdated. Where can I learn more? 

There's a chapter on O-Zones in The Book on Advanced Tax Strategies! https://store.biggerpockets.co...

[Rik Hunter]

@Kaylee Walterbach

Thanks! I have the book and was reading it in prep for tax season, so I'm sure I skipped that section. 

[Adrienne Green]

@Kaylee Walterbach good question! The MLS data that gives the median sales price doesn't expressly state the median house stats. I would say a 3/2, older construction (like pre-2000) at $325k is a pretty reasonable thing to accomplish here.

[Kaylee Walterbach]

@Adrienne Green - Thanks, that is helpful!

[Paiton Patterson]

My investors are seeing success in the Cleveland, Lookout Valley, and Red Bank areas! Happy investing. :) 

[Paiton Patterson]

Quote from @Donte Lee:

Hi, I'm new to the chattanooga area as of 2 months ago.  I've done 1 flip, 1 live and flip and I own 1 rental.  Im looking to partner with someone in the chattanooga area.  

Happy to hear! Welcome to the area!