Where To Invest In Chattanooga, TN Based On Your Goals And Risk Tolerance.
Matthew: Hey, everybody, Matthew Whitaker here with Alex Smith. Alex runs our Chattanooga office for gkhouses and we are going to talk about where to invest in Chattanooga, Tennessee, and North Georgia.
So, Alex was kind enough, cool enough, to put together a map of the North Georgia, Chattanooga area. To see the map visit the video above. What we want to do in is walk through the map and let him tell you a little bit about area. What types of houses you can find, what types of residents, etc.
We are going to start with North Georgia.
Alex: A little disclaimer on this map is that it really depends on what you are looking for. I drew it from the perspective of just buying and holding a single family house.
If you’re looking for flips, I’ll talk about that a little bit but this is mostly geared towards buying, holding a single family.
So, in North Georgia, you are going to find a really good mix of between Class C and Class A properties. The benefit of investing out in this area is that the schools are really good out here.
Matthew: A lot of people buy in North Georgia because the public schools are good?
Alex: Yes exactly. So, your options in Chattanooga are to send your children to a not-so-good public school in the city or send to a private school. If you don’t want to do either and send them to a really good public school, North Georgia is where you want to be.
There are a lot of single-family rentals out in North Georgia because of the great school systems.
Matthew: And from a scale of 1 to 10 in terms of value, what would you give this North Georgia area?
Alex: Probably between a 7 and 9.
Matthew: Let’s talk about East Chattanooga.
Alex: So, East Chattanooga, if you’re looking to buy and hold a single family home, this is where you want to be. The schools are okay out here but you’re going to get a lot of bang for your buck in terms of a good value for a house.
Anybody who doesn’t want to live downtown or in the North Shore, they either live in East Chattanooga or Red Bank.
Matthew: We are not making any claims to schools being better. We are just saying what people are telling to us. Alex what would you give East Side on a scale of 1 to 10 based on value.
Alex: Between an 8 and 9.
Matthew: So, this is probably the highest value area in all Chattanooga?
Alex: North Georgia is not as densely populated as it is east of the city. So, if you want to minimize days on market and get a good value, East Chattanooga is where you will want to be.
Matthew: Let’s move to downtown Chattanooga.
Alex: We manage a couple of downtown condos. So, if you’re looking to get into that type of space, downtown would be a good area to find that sort of property in.
Matthew: So, you’re talking about industrial-type buildings that have been retrofitted into condos and restaurants in the area?
Alex: Yes, either that or a new building specifically for condos.
Matthew: Now on a scale of 1 to 10, what is the value in that area in your opinion.
Alex: Not so great. Probably between a 5 and 7, if not lower. With that being said, if you are curious about the overall question of where to invest in Chattanooga, downtown is not a good option for single family homes.
Alex: Yeah. So, before we move on, another quick, little factoid about downtown.
As you move east into the city you get a pretty decent mix of property types, you could find a distressed Class D, you can find a historic Class A.
If you are into flipping, this would be a good place to find a flip. The schools in this area are not good, so keep that in mind. If you’re not really looking to do a flip and you want tp get into maybe lower income housing, this would be a good area to do that as well. You will find a lot of older houses that will probably need a lot of maintenance.
North Shore and Ooltewah
Matthew: Awesome. Let’s move on to North Shore and Ooltewah. We are grouping them together because these are where the pricier homes are.
Alex: Right. Exactly. So, North Shore is like the hip area of town, a lot of Class A. You might be able to find a flip but I would imagine they are pretty hard to find.
North Shore specifically is pretty overpriced but it’s very densely populated. So, keep those in mind if you are looking to invest in the North Shore area.
Matthew: Awesome. And you would say the competition there is pretty stiff to find awesome deals?
Alex: Yes. That’s what I would say.
Alex: So, the good thing about Ooltewah is that you are pretty close to Volkswagen and Amazon. Those are probably the two biggest employers in Chattanooga, I would say. Those are located up 75.
Alex: Yes. You’ll also find a lot of Class A. So, not necessarily a ton of value there, but a good thing to know about Ooltewah is the proximity to Amazon and Volkswagen.
Red Bank and Hixon
Matthew: Perfect. All right. And let’s talk Red Bank and Hixson.
Alex: So, Red Bank is similar to East Chattanooga. If people want to be close to the North Shore but don’t want to deal with North Shore prices, Red Bank is where they go.
As you get further north into Hixson you will notice it is not as densely populated. It is not incorporated so there are less people living there.
I would say Red Bank is a place for prime value, but as you get further north it is a different story. If you want to minimize your vacancy, Red Bank in East Chattanooga is where you are going to want to be.
Matthew: Awesome. Well, we have run through all of Chattanooga. Alex, I appreciate you taking a few minutes to talk to me about this.
If you want to find out more, you can reach out to us. We’d love to talk to you about where to invest in Chattanooga.
Alex: Thanks, everybody.