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!

The meanie side of me says, stay out of our market you out of towners! ;) But the other side says, yes, Chattanooga is a great market to invest in! There's lots of competition so off of market deals are the best.

@Tyler Rodgers I have to agree with Thomas on taking the 37406 ZIP Code block by block. Just bought a duplex in that area on a street that I believe to be fairly stable. Currently renovating the vacant side myself. I would not have bought it if I did not feel good about the idea of renovating the property for hours at a time, sometimes in the evenings. However, I did install a SimpliSafe security system immediately after purchasing it. If you plan to do section 8 as I do, you can download an Excel spreadsheet showing all the currently listed rents, deposits, and numbers of bed and bath directly from the Chattanooga Housing Authority. That's how I arrived at my rental rate and deposit amount, based on averages taken from that data.

I would start in the 37404 and 37411 zip codes. Also East Ridge, TN.

Those areas are very challenging. Lots of gang activity. Would have to take it block by block.

As an investor and wholesale for the past 12 years in Chattanooga, I’d be careful of who I’d let manage my rentals. Personally I use whitewater Pm, Or First Pm. Both do great work. Ibuy423.com/property-listings/

@Tyler Rodgers, I like the area as well. I will be making a trip there in a few weeks to check it out.

@Thomas DeMoss Could you recommend any areas of Chattanooga with decent cash flow opportunities that don't come with the gang problem?

Chattanooga too good to be true?

James Rodgers

Investor · Birmingham, AL · Member since 2016 · 135 posts · 42 votes

9y

@Tyler Rodgers I recently heard a saying that I am going to adopt as my own: "It's Rodgers with a "d". The "d" is because I make more money." :)

Do you have an update on your Chatanooga venture? My family travels there often for weekend getaways, and I had the idea that if I buy a property for AirBNB purposes, I have a cool, updated, FREE place to stay whenever I want.

James

Chattanooga too good to be true?

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