All Forum Posts by: Adrienne Green

Hi @Michelle Barlow! I've bought wholesales in TN several times. If you are comparing it to buying house on MLS, the major difference is there are no contingencies. Once you agree to buy the house and pay the Earnest Money Deposit, you're in! There's no opportunity to cancel the contract and walk away due to inspection, financing, appraisal, etc. I will note this is the standard situation for wholesales- since it's a relatively unregulated industry, every wholesaler can do things their own way!

Buying from a wholesaler can be fabulous!  I would just make sure you really feel comfortable with the house's condition.

@Marco Egurvide I help investors in the Chattanooga area, on both the TN and GA sides. It's interesting you're focusing on the Georgia side- more often I see a bias toward the TN side side the city of Chattanooga is on the TN side. Both the TN and GA sides of the region are great for REI, and price point tends to bit a bit lower on the GA side. @Matthew Ollis is a great investor focused insurance agent who can help you once you buy here!

Chattanooga is a fabulous market, and you're right to consider it.  There are a lot of good points made on here that we can't recommend a market without knowing your specific goals.  In comparing Chattanooga to Memphis, Chattanooga is more of hybrid market where you'll get cashflow and appreciation, versus Memphis is more of a cashflow market (to my knowledge).  Chattanooga is growing- 45th metro area in the nation. in terms of growth in 2021.  Low property taxes, growing population, etc.

Chattanooga has a respectable number of MF, I will say SF is also a fabulous investment in the area.  I typically recommend in this market people stay open to both options, and just evaluate the deals.

Knoxville is the other area I'd look in TN, based on what you have shared.

Thanks for highlighting the benefits of cost segregation, @Julio Gonzalez!  I'm in the midst of doing this on my rental properties, and the tax benefits are fabulous!  Definitely something that should be on every investor's radar.

Hi Jack!  It's tough to have an investor focused business in a market that isn't great for investors.  I'm not an expert on the Nashville market and its returns, I just know that many from Nashville are investing down here in Chattanooga instead.  They all say the returns in Nashville aren't good enough.

@Joe Lee Congrats on getting into the real estate investing game!  I specialize in the Chattanooga market.  It's getting competitive in the sub $200k market here for rent ready houses.  I'd suggest focusing in the North Georgia portion if that's your limit, as prices tend to be a little lower there.  Rents drop proportionally, so overall your returns should be the same.

As a new investor, I'd caution you to keep in the mind the big picture. This is something David Greene touches on in a lot of his recent podcasts- the REI market is changing, that doesn't mean it's getting bad. Just keep the long game in mind, and don't get fixated on home run returns in the first year!

Best of luck in your REI journey!

@Jordan S. my first several investment properties were condos, they can be solid investments!  In my situation, the numbers worked better than anything else nearby, the amenities increased appeal to renters, and the condo association handling the exterior maintenance lessened my workload as an owner.  My only cautionary note is that lending can be tricky, and you may be restricted to leases of 6 months or longer (both depend on the condo complex).

Hello!  I assume you mean offers with appraisal contingencies, as nearly all loans are contingent on appraisal.  Like most places, Chattanooga is a competitive market with low supply these days.  An offer should be considered in terms of its overall strength, and one aspect of that should be considered in context with the rest.  So an offer's appraisal contingency component is one aspect that must be part of what is a strong offer as a whole. 

Overall, I'd say appraisal gap coverage is the most common situation I see with winning offers these days.  Very few buyers using financing have the ability and/or willingness to completely omit the appraisal contingency.

Sounds like a great deal!  @Danielle Roos is one of my favorite people- glad she could help you here!

@Jacob O'Malley your upcoming move sounds fabulous!  I moved to Chattanooga from Virginia in 2020 and couldn't be happier I made the move.  Overall Chattanooga sounds like a good fit for you- keep in mind it won Outdoor Magazine's Best City award TWICE!  So the outdoor lifestyle requirement is definitely met here.  Plus, with having UTC here there is a large "under 30" population where I think you'd feel comfortable.  (Of course Knoxville, with UT, would likely also check that box.)

As far as the housing market, when I compared both markets in 2020, I found Chattanooga offered more bang for your buck.  The median sales price here in 2021 was $265k.  

How competitive the market will be for what you want depends on your budget.  Right now, if $200k is your max you'll have a tough time.  If you you're looking $200-300k I think you'd be fine.

I hope that helps!