CHATTANOOGA MARKET REPORT
OVERVIEW
BJ Gremillion & Brad Young, owners of Property Rush, have been investing in real estate since 2008. During this time, they have successfully expanded the business into 5 markets to include Arizona, Tennessee, Michigan, Alabama and Georgia.
When it comes to investing in a new market, ideally, you want to focus on regions that boast growing, diversified economies with a business-friendly regulatory climate. We believe that the surrounding Chattanooga area meets these criteria, as evidenced below. Chattanooga is a fast-growing city that sits in the Southeast corner of the state, just across the border from Georgia. Chattanooga sits on the junction of four interstate highways and the Tennessee River, making it a prime location for several industries, including manufacturing, logistics, and resource extraction outfits- among others. The city’s downtown “shines” partially as a result of a successful public/private redevelopment program and widespread civic and community engagement is the future of the city. Chattanooga is home to Volkswagen, who employs approximately 3800 people with plans of developing another plant in Chattanooga to focus on the rising demand for electric vehicles.
The local real estate market in Chattanooga remains rock-solid. According to statistics collected by the Greater Chattanooga Realtors Association, as of December 2021, the region saw a 9.9% increase in closed sales, a -48.8% drop in days on market, and a 7.7% rise in new listings over the past year. Inventory levels in the city are also dropping, -36.2% change in a single year. The city’s real estate market remains affordable, with the average home price sitting at $265,000, an increase of 15.2% over 2020. Chattanooga and surrounding areas have a healthy rental market, with rental rates averaging approx $2000 per month for a 3 bedroom home.
PROPERTY HIGHLIGHTS
3806 Brock Rd, Chattanooga, TN 37421
4 bd 3 ba 2,569 sqft
Purchase price: $255,000 (11/1/21)
Estimated ARV: $320,000
Actual rent: $2,250
Actual rehab costs: $18,000
CAP rate: 8.35%
Cash on cash return:
Year built: 2005
Property type: Single Family
Lot: .41 acres
Neighborhood: No HOA
3635 Missionaire Ave, Chattanooga, TN 37412
5 bd 3 ba 2,436 sqft
Purchase price: $245,000
Estimated ARV: $320,000
Actual rent: $1,050 2/1 and $1,400 3/1
Actual rehab costs: $5,000
CAP rate: 7.98%
Cash on cash return:
Year built: 1964
Property type: Duplex
Lot: .23 acres
2549 and 2555 Ocoee St, Chattanooga, TN 37406
3 bd 2 ba 1,145 sqft
*New construction home next to each other*
Purchase price: $177,500 each
Estimated ARV: $190,000
Actual rent: $1,500
Actual rehab costs: $0
CAP rate: 7.5%
Cash on cash return:
Year built: 2022
Property type: Single Family
Lot: .09 acres
1407 Clearpoint Dr, Hixson, TN 37343
3 bd 3 ba 2,187 sqft
Purchase price: $220,000
Estimated ARV: $300,000
Actual rent: $2,300
Actual rehab costs: $25,000
CAP rate: 7.68%
Cash on cash return:
Year built: 1960
Property type: Single Family
Lot: .3 acres
806 Forest Dale Ln, Hixson, TN 37343
6 bd 4 ba 2,622 sqft
Purchase price: $320,000
Estimated ARV: $325,000
Actual rent: $3,000
Actual rehab costs: $0
CAP rate: 8.44%
Cash on cash return:
Year built: 1972
Property type: Duplex
Lot: .23 acres
1132 Highland Dr, Chattanooga, TN 37405
3 bd 2 ba 1642 sqft
Purchase price: $300,000
Estimated ARV: $425,000
Estimated rent: $2,500
Actual rehab costs: $40,000
CAP rate: 7.10%
Cash on cash return:
Year built: 1925
Property type: Single Family
Lot: .21 acres
Neighborhood: North Shore (HIGHLY DESIRABLE)
303 Windmere Dr, Chattanooga, TN 37411
3 bd 2.5 ba 2213 sqft
Purchase price: $302,000
Estimated ARV: $340,000
Estimated rent: $2,400
Actual rehab costs: $7,500
CAP rate: 6.38%
Cash on cash return:
Year built: 1963
Property type: Single Family
Lot: .28 acres
5056 Eller Rd, Chattanooga, TN 37416
3 bd 2.5 ba 1612 sqft
Purchase price: $200,000
Estimated ARV: $275,000
Estimated rent: $2,000
Actual rehab costs: $16,000
CAP rate: 7.75%
Cash on cash return:
Year built: 1964
Property type: Single Family
Lot: 3.67 acres
4715 Oakland Ave, Chattanooga, TN 37410
3 bd 1 ba 1184 sqft
Purchase price: $100,000
Estimated ARV: 130,000
Actual rent:
Actual rehab costs: $8,000
CAP rate: 7.56%
Cash on cash return:
Year built: 1930
Property type: Single Family
Lot: .17
52 Wilburger St, Rossville, GA 30741
2 bd 1 ba 756 sqft
2 bd 1 ba 1274 sqft
*2 Homes on one lot
Purchase price: $127,500
Estimated ARV: $200,000
Estimated rent: $1,800
Actual rehab costs: $12,000
CAP rate: 11.16%
Cash on cash return:
Year built: 1937
Property type: Single Family
Lot: .22
