All Forum Posts by: Adrienne Green

@Sandy Keller are you self managing?  These issues and situation seem like a perfect scenario for an experienced property manager to come in and share best practices, and help you develop a plan to maximize the profitability of these units.

@Aaron Bito what I think you're touching on here is risk versus return.  You say several things that suggest you are low risk: you want to see the houses in person, the preference of a newer construction home.  I think being lower risk for your first investment is a safe move, realize that will mean less return.

In all the markets I've looked at, a new construction house won't cashflow that much as a LTR.  Typically you're getting greater cashflow on the older house.  If you're not seeing that, I would look more closely at your underwriting.  I wonder if the numbers are off.

@Kevin Sabatino the most beneficial investing strategy is the one that works for you and your situation.  What is your goal: cashflow, appreciation, etc?  

One thing working well is people using HELOCs on their primaries to buy houses cash and then refinancing. That works for a BRRR, rent ready, anything. Of course it depends on you having the equity in your primary!

In Chattanooga we have a lot of BRRR opportunity, as well as STR and MTR demand. Non-owner occupied STR permits have a temporary moratorium within city limits right now while city council figures out what they want to do in terms of permits going forward. Luckily there are opportunities outside city limits!

As the market shifts we're starting to see seller financing and subject to opportunities, which had been pretty rare for a while.

@Rom Y. Welcome to the BP forum!  I would start with what's your goal?  Appreciation, cashflow, what?  You need to have a crystal clear goal in order to develop the best plan to get there.  For example, MF is great for cashflow, not necessarily appreciation.  And Tennessee is an entire state, there are multiple different markets within it!  Knowing your goal will help determine what markets are the best to help you reach it.

I'm in Chattanooga TN, which is a solid hybrid market with a mix of appreciation and cashflow.  Supply of MF properties here has really increased in the last few months, as the MF demand was white hot from March 2021-March 2022, and has now returned to standard levels.

Thanks @Evan C. and @Nick Velez!  Chattanooga is a fabulous market for long distance investors as there are lots of service providers to build your team, and of course the market has an approachable price point and great returns.  @Zac Lahrman I'll reach out!  

Hi Eden! I'm glad you've zeroed in on Chattanooga for the MTR potential here! That eliminates any kind of zoning/ STR permit requirement, making the whole thing easier to accomplish, and opening up the entire region to you!

There are a few MTR managers in this area.  

Personally, I manage my own long distance STRs at this time.  The key is to have a good team of cleaners, handymen, etc., and making sure the numbers work to pay them when work is needed!

What @Nathan Gesner said is spot on.  There are a lot of property managers out there- interview until you find a good one.

@Emilio Shah Knoxville is notably larger, and has UT, which brings in a lot of people for sporting events during the school year.  Chattanooga has a smaller city feel.  It still has a lot of amenities, I'm sure less than Knoxville though.  Chattanooga's nickname is The Scenic City and enjoying the outdoors is popular- hiking, boating, etc.

I'm sure there are others more experienced with Knoxville who could weigh in on it!

@Emilio Shah in terms of REI opportunities in Chattanooga, we have a bit of everything: LTR, STR, flips, BRRRs... There are houses to renovate, which not every market has, and of course rent ready!

I would note that it's a hybrid market where you get appreciation and cashflow, that being said, it's not going to be the highest in either of those categories since it has both.

In terms Chattanooga versus Knoxville, most people choose where to live more based on the vibe and city size they prefer.

Hi @Emilio Shah, the thought you're putting in to your upcoming move is impressive!  I moved to Chattanooga, Tennessee in 2020 and love it here.  There are certainly investment opportunities.  It's the 4th largest city in TN, and if you want larger, than go with Knoxville.  If you think Chattanooga may be a good fit for you, feel free to reach out with any questions.

If you decide the MO route is a better fit for you, I recommend speaking with real estate agent Kelly Revoir in that area.  She runs a team there, and is a great agent.