What’s up, everybody? Alex Smith here from evernest Chattanooga. This is another edition of Questions Owners Ask. The question I wanted to do today was, “I’m looking to get into real estate investing in Chattanooga, what are some things I should avoid?”
So there are three I want to talk about today.
The first thing to avoid is pretty simple. It is, don’t overpay.
Everybody always wants to get the best deal for the lowest price.
The best way to make sure you are not overpaying is to do your homework. Research the area you are interested in. You could even talk to local investors and get their opinion on the area you are interested in.
The second thing to avoid is assuming a house if going to appreciate.
To explain that further, don’t have appreciation be your only profit center.
Like the stock market, the housing market is impossible to time. Home values can change for reasons outside of your control.
You should never assume a house is going to appreciate and also don’t let that be your only form of profit.
A pro-tip while buying/looking for a house in Chattanooga would be to buy a house that you can add value to you by fixing up. Whether that is doing a whole flip or maybe just remodeling the kitchen. A good way to appreciate your house is by adding to it.
Also, in Chattanooga, another thing you can do is buy a house that already has a tenant in it.
If you go that route, there is already cash flowing through rent. This is a good way to generate some cash flow.
The last thing I’ll say about appreciation is even if your house value goes down, if you have a tenant in it, you are still generating cash. So unless you are looking to sell the house, it doesn’t really matter what the house is worth, if you’re looking to buy and hold.
The third thing to avoid is one that a lot of people do not think about. Being a landlord is a business regardless of whether you have a property manager or you do it all yourself. A lot of people make their way into this industry without realizing that.
You will have to deal with some sort of customer service whether that is keeping your tenants happy or dealing with your vendors.
You are going to want to keep your expenses down while increasing your revenue however you can.
This one is often overlooked, but it is important. Make sure you are treating your homes as an active investment and you are treating them like a business.
These were a few things that one should avoid while trying to get into Real Estate Investing In Chattanooga.
If you are looking for a Property in Chattanooga and, If you have any questions, I would love to help.
Just let me know. You can call us or you can email us.
Thanks, everybody. See ya.
Spencer is the VP of Marketing at Evernest. He wakes up with Google and Facebook on his mind. Having bought and sold over 150 homes in Birmingham, Spencer gets a kick out of helping new and seasoned investors navigate the mistakes he made as an investor. Spencer is also passionate about his love for Michael Jordan and does his best to explain to the Millennials (who never saw him play live) how much better he was than LeBron. He loves to hang out with his wife, kids, and the world’s best black lab, Jett.