I am from Oregon, and have been looking to get started with buy and hold investing here. It's been pretty hard finding cash flow properties here, so my wife and I have been discussing the prospect of investing out of state. My brother in law lives in Chattanooga, so I started looking ok Zillow, rentometer, and Craigslist just to get a feel for the market.
At a glance so far, it looks like Chattanooga blows my area out of the water in terms of rent/purchase price ratio. I'm seeing dozens of properties in the 2-4% range on the MLS. In Oregon, we are really struggling to even find 1%, so this area seems like a gold mine. I would have boots on the ground with my BIL to help as well.
My question is basically, what's the catch? Taxes and prices seem low, rents fairly high. Is there something I'm not aware of that I should be? Bad neighborhoods? Unfair tenant laws? I don't know, something? This seems too good to be true.
Also are there any recommendations for Realtors, property managers, contractors, etc in the Chattanooga area?
I'd be glad to help. Pm me the areas you are looking at.
@Thomas DeMoss I haven't narrowed it down to specific neighborhoods yet, but I will certainly keep that in mind. Thank you.
Here's a couple examples of the kind of properties catching my eye. I just don't know the neighborhoods yet.
Those areas are very challenging. Lots of gang activity. Would have to take it block by block.
@Thomas DeMoss That's exactly what I was concerned about. Thank you. It's hard to tell from across the country what is a blue-collar neighborhood and what is dangerous.
@Thomas DeMoss Could you recommend any areas of Chattanooga with decent cash flow opportunities that don't come with the gang problem?
@Tyler Rodgers , I like the area as well. I will be making a trip there in a few weeks to check it out.
@William Allen I would be curious to know the results of your trip! I'll be heading out there in September for a wedding, but I could fly out sooner if we decide to purchase a property. I am going to send a colleague request if you don't mind.
@Tyler Rodgers - Chattanooga is a great market! I've lived here for 17 and invested here for 15.
Have you ever looked at Roseburg - a little south of you?
@Jimmy Moncrief Thank you. I honestly hadn't looked that much around the rest of Oregon. I guess I assumed my County was pretty typical. At a glance, I appear to be wrong about that. I'll look more into the Roseburg area as well. It's funny to have someone 2500 miles away point out something 90 miles away!