Chattanooga too good to be true?

66 Replies

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?

Thanks!

@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!