Prime Chattanooga Investment Property

6508 Pine Manor Dr Chattanooga, TN 37421

$310,000 | 3 Bedrooms | 2 Bathrooms | 5.2% Cap Rate

‍I'm Interested in this Property

Listing Description

Listing: Awning - Redfin - Zillow

Introducing a prime investment opportunity at 6508 Pine Manor Dr, Chattanooga, TN 37421 - a cozy and well-maintained 3-bedroom, 2-bathroom home perfect for long-term rental investors. This charming property is listed at $310,000, with an estimated monthly rent of $2,150 and a cap rate of 5.2%.

Located in the picturesque city of Chattanooga, this home offers easy access to major employers, such as Volkswagen Group of America, Amazon, and Erlanger Health System, making it an attractive rental option for professionals. The city also boasts a diverse population, excellent schools, and a range of outdoor activities, which appeal to families looking for a long-term rental.

The property features hardwood floors, granite countertops, a separate dining room, a two-car garage, and an outbuilding for additional storage. A screened-in deck overlooking the fenced-in backyard provides an idyllic outdoor space for tenants to enjoy. With a well-maintained interior and exterior, this property is ready for occupancy with minimal renovation costs. The home is located in Flood Zone X, which means flood insurance is not required.

Chattanooga's rental market is thriving, with a median rent price of $1,892 per month as of February 2023. As an investor, you'll benefit from a growing rental demand in a city known for its beautiful mountain scenery, outdoor recreational opportunities, and attractions like the Tennessee Aquarium and Ruby Falls.

To secure this investment, simply submit your information by pressing "I'm Interested in this Property." An agent will guide you through the closing process and help you review the contract to ensure a smooth transaction. If you choose to use Property Management, we can assist you in selecting the best service and securing a competitive deal on management in the area.

Don't miss this opportunity to invest in a charming, well-maintained property in the sought-after Chattanooga rental market. 

Investment Financials

How much does the home cost?

$310,000  

‍How much will it earn in rent?

$2,150 per month

‍How much will it cost to renovate?

The information provided in the listing does not include an estimated renovation cost. However, the Awning estimate is $4,500 for any major items that may need replacing since the home is more than 15 years old. This may not be a comprehensive estimate and additional renovations may be needed depending on the condition of the property. 

‍How much cash can you take home in the first year?

In the first year, the property at 6508 Pine Manor Dr, Chattanooga, TN 37421, with a purchase price of $310,000 and an estimated monthly rent of $2,150, is expected to generate a negative cash flow of $647. This means that in the first year, you would not be taking home any cash; instead, you would have a deficit of $647. However, this is just an estimate, and actual cash flow may vary based on various factors such as property management, vacancies, and maintenance costs.

‍What is the cap rate for this property?

The estimated cap rate for this property is 5.2%.

‍All of the cap rates and returns for this property are estimates and are not intended as a guarantee of income or returns. Every investment has risks. It's important to discuss any investment, returns, regulations, laws and projections with a financial advisor, attorney or another fiduciary.

Why People Rent In Chattanooga, Tennessee

Where is Chattanooga, Tennessee?

Chattanooga is a city located in southeastern Tennessee, near the border of Georgia. It is situated along the Tennessee River in Hamilton County and is the fourth largest city in the state. Chattanooga is known for its beautiful mountain scenery, outdoor recreational opportunities, and attractions like the Tennessee Aquarium and Ruby Falls. The city is approximately 118 miles southeast of Nashville and 118 miles northwest of Atlanta, Georgia.

‍What companies are the major employers in and around Chattanooga, Tennessee?

• Volkswagen Group of America: Volkswagen has a manufacturing plant in Chattanooga that employs over 3,800 workers.
• Amazon: The e-commerce giant has several facilities in the area, including a large fulfillment center that employs around 3,000 people.
• Erlanger Health System: Erlanger is the largest hospital system in the Chattanooga area and employs over 6,000 people.
• Tennessee Valley Authority: The Tennessee Valley Authority is a federally owned corporation that provides electricity for the Tennessee Valley region, including Chattanooga. It employs over 2,500 people in the area.
• McKee Foods Corporation: McKee Foods is a family-owned snack food manufacturer that produces brands like Little Debbie and Drake's. It has several facilities in the Chattanooga area and employs around 1,400 people.
• BlueCross BlueShield of Tennessee: BlueCross BlueShield of Tennessee is a major health insurance provider that is headquartered in Chattanooga. It employs over 5,000 people in the area.
• Chattem, Inc.: Chattem is a subsidiary of French pharmaceutical company Sanofi and produces over-the-counter medications and consumer healthcare products. It employs around 1,000 people in Chattanooga.
• Unum: Unum is a Fortune 500 insurance company that is headquartered in Chattanooga. It provides disability insurance and other employee benefits and employs around 3,500 people in the area.
• Wacker Polysilicon: Wacker is a German chemical company that produces hyperpure polycrystalline silicon for the solar and semiconductor industries. Its Chattanooga plant employs around 650 people.
• BlueCare Tennessee: BlueCare Tennessee is a managed care organization that provides healthcare coverage to Medicaid recipients in the state. It employs around 900 people in Chattanooga.

‍What are the demographics of Chattanooga, Tennessee?

According to the US Census Bureau, QuickFacts, Chattanooga city in Tennessee had a population of approximately 182,000 people as of 2020. The city has a diverse population with a racial makeup of 57.9% White, 33.3% Black or African American, 0.3% American Indian and Alaska Native, 3.9% Asian, 0.1% Native Hawaiian and Other Pacific Islander, and 4.6% two or more races. Hispanic or Latino individuals, who can be of any race, make up 7.7% of the population.

In terms of age, the median age in Chattanooga is 38.9 years. The population under 18 years old accounts for 21.4% of the total population, while individuals aged 65 years and over account for 14.7%. The gender distribution in the city is almost equal, with 48.5% male and 51.5% female.

Additionally, the median household income in Chattanooga is $51,879, with a poverty rate of 18.4%. Of the population aged 25 years or older, 88.4% have a high school diploma or higher, while 30.7% have a bachelor's degree or higher.

It is important to note that the data provided in the US Census Bureau QuickFacts is based on the American Community Survey and Economic Census, and is subject to sampling error.

‍What is the Niche neighborhood grade and school grade in Chattanooga, Tennessee?

It appears that Chattanooga, Tennessee has received positive grades for its neighborhoods and schools from Niche and GreatSchools.

According to Niche, Chattanooga received an overall grade of B- for its neighborhoods, with an A grade for outdoor activities and A- for commute. Additionally, Niche ranks several schools in Chattanooga, including a private school which has an overall grade of A+ with an average review of 4.6 stars from Niche users.

GreatSchools provides a rating for a specific school in Chattanooga called Chattanooga School for Arts and Sciences Csas Uppe. This public school received a rating of 5 out of 10, with a College Success Award in 2020 and 13 reviews from parents and students.

‍What is the property tax rate in Chattanooga, Tennessee?

According to the average effective property tax rate in Hamilton County, where Chattanooga is located, is 0.92%. However, the total mill rate for property taxes in Chattanooga is $2.2250 per $100 in assessed value. For more specific information on property tax payments and the property tax sale, individuals can contact the Clerk & Master's office directly at (423) 209-6606 or visit them in person at 625 Georgia Ave, 300 Courthouse, Chattanooga, TN 37402.

‍How many rental listings and vacancies are in Chattanooga, Tennessee?

There are varying numbers of rental listings and vacancies in Chattanooga, Tennessee. Realtor.com shows 378 results for rentals in Chattanooga, TN, while Zillow has numerous rental listings for apartments and houses. However, it is unclear how many of these listings are currently vacant or accepting applications. It is recommended to contact the rental management companies or landlords directly for updated information on vacancies.

‍What's the average rent in Chattanooga, Tennessee?

The average rent in Chattanooga, Tennessee varies depending on the neighborhood and type of apartment. Zillow reports that houses in Chattanooga rent between $700 and $155,000, with a median rent of $1,892 per month as of February 2023. The median rent price has increased by $197 from February 2022. Rentcafe lists the most affordable neighborhoods in Chattanooga with an average rent of $999 per month, including 21st Century, Hilltop, and Ridgeside. Zumper reports that the average rent for a studio apartment in Chattanooga increased by 23% to $1,460 over the past month. The average rent for a 1-bedroom apartment remained flat, and the average rent for a 2-bedroom apartment decreased by -2% to $1,500.

From Listing to Rental

1. Place an offer on this property: If you want help finding the best representation, simply submit your information by pressing "I'm Interested in this Property"
2. Close on the property: Closing on this property should be simple. An agent will help you review the contract and confirm that everything in the inspection report makes this a good deal.
3. Hire a property manager to manage your property: If you choose to use Property Management we can help you select the best service and get you a deal on management in the area.