Chattanooga TN Investing in the ghetto

5 Replies | Chattanooga, Tennessee

@Caleb Duncan Don't. You will have a very hard time refinancing with banks and finding good tenants. Mostly would be section 8 and they will be very hard on your property. Calculate repair costs at 20% instead of 5%. 

With that said, there can be some pretty sweet cash flow in these types of units especially small Multi Fam. Good Luck! 

To piggy back on Daniel Beaulieu's point, there are many unseen expenses.  Extended vacancies, higher turnover, lower quality tenant pool, etc.  We manage in those parts of town here.  With prices up across the board I would tread carefully on buying there. 

@Caleb Duncan @Brian Levredge manages some of my units there and comes highly recommended. Definitely listen to whatever he has to say! A very popular price point would be 100K to150K ARV on an SFR... You should still be able to cash flow a little bit and will have much better tenants.