Would you be surprised to learn that the Chattanooga metro area has grown to nearly half a million residents? Chattanooga has been consistently growing over the past four years, and people are starting to recognize the value of property in Chattanooga.
With Tennessee having no state income tax and housing properties in Chattanooga still being affordable, Chattanooga is a great place in which to invest.
In the article below, you’ll find a list of more reasons why you should invest and hold property in Chattanooga. You’ll learn about the benefits in terms of cash flow and property appreciation.
Continue reading to learn more about why it’s a good idea to invest in Chattanooga property right now.
Chattanooga Homes Have Low Price Points
Although Chattanooga home prices have been rising over the past few years, the average home price is still under $350,000. If you’re thinking about buying real estate in Chattanooga, you should perform a rental analysis to determine if you’re able to generate cash flow.
You’ll have to look at how much landlords in the area are charging for rent for comparable properties. If the monthly rental income will be higher than your monthly mortgage payment, you should be able to generate cash flow.
Of course, you’ll also have to factor in your fees for property taxes, home insurance, and property upkeep.
Investing in Property Allows Two Opportunities for Income
One of the main reasons to invest in the real estate market is the opportunity to generate income in multiple ways. When you buy a house for rent, you’re buying an asset that can generate income on its own. You’ll be able to make money every month by renting out the property to paying tenants.
You can also generate income if the property appreciates. If you buy and hold the property for a long time, you should be able to sell it at a future date to make a profit.
You Don’t Have to Give Up Your Free Time
There’s a common misconception that buying rental property means you’ll have to spend all your free time taking care of the property and tenants.
This is only true if you choose not to use a property management company. It can find tenants for you, take care of small maintenance issues, and handle all the leasing agreements. All you have to do is relax and watch your property generate passive income.
Reviewing the Best Reasons to Invest in Property in Chattanooga
Now that you understand why it’s a good idea to buy and hold property in Chattanooga, you’re ready to invest.
If you're worried about the property taking up all your free time, it may be a good idea to talk to a property management company. You can reach out to the experts at Home River Group for help with your new property.