Rehabbing & House Flipping

User Stats

30
Posts
6
Votes
Daniel Walker
  • Old Hickory, TN
6
Votes |
30
Posts

Price Points for Chattanooga Flips

Daniel Walker
  • Old Hickory, TN
Posted Jun 21 2022, 08:00

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.

Chattanooga, Tennessee

User Stats

297
Posts
250
Votes
Adrienne Green
  • Real Estate Agent
  • Chattanooga, TN
250
Votes |
297
Posts
Adrienne Green
  • Real Estate Agent
  • Chattanooga, TN
Replied Jun 21 2022, 14:11

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.  

User Stats

2
Posts
1
Votes
Replied Jul 9 2022, 00:50

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.  

User Stats

54
Posts
28
Votes
Benjamin Bleasdale
  • Contractor
  • Spencer, TN
28
Votes |
54
Posts
Benjamin Bleasdale
  • Contractor
  • Spencer, TN
Replied Jul 9 2022, 03:38
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?


User Stats

49
Posts
33
Votes
Replied Jul 9 2022, 05:36
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?

User Stats

298
Posts
535
Votes
Brian Boyd
  • USA
535
Votes |
298
Posts
Brian Boyd
  • USA
Replied Jul 20 2022, 07:59

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

User Stats

72
Posts
35
Votes
Rik Hunter
  • New to Real Estate
  • Chattanooga, TN
35
Votes |
72
Posts
Rik Hunter
  • New to Real Estate
  • Chattanooga, TN
Replied Jul 21 2022, 04:43
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...

User Stats

2
Posts
1
Votes
Replied Jul 21 2022, 06:44
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

User Stats

27
Posts
17
Votes
Oscar Zendejas
  • Rental Property Investor
  • Chattanooga, TN
17
Votes |
27
Posts
Oscar Zendejas
  • Rental Property Investor
  • Chattanooga, TN
Replied Jul 21 2022, 13:25

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

User Stats

95
Posts
483
Votes
Kaylee Walterbach
  • BiggerPockets Publishing Operations Manager
  • Denver, CO
483
Votes |
95
Posts
Kaylee Walterbach
  • BiggerPockets Publishing Operations Manager
  • Denver, CO
Replied Jul 22 2022, 15:01
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?

User Stats

95
Posts
483
Votes
Kaylee Walterbach
  • BiggerPockets Publishing Operations Manager
  • Denver, CO
483
Votes |
95
Posts
Kaylee Walterbach
  • BiggerPockets Publishing Operations Manager
  • Denver, CO
Replied Jul 22 2022, 15:03
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 Strategieshttps://store.biggerpockets.co...

User Stats

72
Posts
35
Votes
Rik Hunter
  • New to Real Estate
  • Chattanooga, TN
35
Votes |
72
Posts
Rik Hunter
  • New to Real Estate
  • Chattanooga, TN
Replied Jul 23 2022, 06:16
@Kaylee Walterbach

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

User Stats

297
Posts
250
Votes
Adrienne Green
  • Real Estate Agent
  • Chattanooga, TN
250
Votes |
297
Posts
Adrienne Green
  • Real Estate Agent
  • Chattanooga, TN
Replied Jul 23 2022, 12:00

@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.

User Stats

95
Posts
483
Votes
Kaylee Walterbach
  • BiggerPockets Publishing Operations Manager
  • Denver, CO
483
Votes |
95
Posts
Kaylee Walterbach
  • BiggerPockets Publishing Operations Manager
  • Denver, CO
Replied Jul 25 2022, 14:38

@Adrienne Green - Thanks, that is helpful!

User Stats

15
Posts
3
Votes
Paiton Patterson
  • Investor
  • Chattanooga, TN
3
Votes |
15
Posts
Paiton Patterson
  • Investor
  • Chattanooga, TN
Replied Aug 8 2022, 12:32

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

User Stats

15
Posts
3
Votes
Paiton Patterson
  • Investor
  • Chattanooga, TN
3
Votes |
15
Posts
Paiton Patterson
  • Investor
  • Chattanooga, TN
Replied Aug 9 2022, 21:10
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!