224 Allen Rd Unit 1 Chattanooga, TN 37415
$350,000 | 3 Bedrooms | 3 Bathrooms | 5.0% Cap Rate
I'm Interested in this Property
Listing Description
Listing: Awning - Redfin - Zillow
Introducing an Incredible Investment Opportunity in Chattanooga! This renovated 3-bedroom home, located at 224 Allen Rd Unit 1, is a hidden gem nestled on a hillside, offering absolute privacy and breathtaking views towards Signal Mountain. Priced at $350,000, this spacious all-brick residence spans 1,950 square feet and boasts a host of impressive features. Step inside to discover a cathedral great room that creates an airy and welcoming atmosphere. The main level houses all three bedrooms, including a vaulted owner suite with two separate closets, while the guest bath has been beautifully updated. Downstairs, a large open rec room, half bath, and separate workout or storage area provide additional versatility.
This property has been meticulously reviewed and estimated by the Awning team, ensuring the best possible rental income projections and appreciation potential. With a desirable B+ overall Niche grade for the neighborhood and its close proximity to Hixson Elementary, Red Bank Middle, and Red Bank High School, this home is sure to attract tenants seeking quality education for their families.
Investors will also appreciate the additional perks of this investment opportunity. The property is located in flood zone X, eliminating the need for flood insurance. Additionally, an estimated renovation cost of $4,500 has been factored in to cover any major replacements that may arise due to the home's age.
With a cap rate of 5.0% and a projected 10-year return of 27.8%, this property offers a promising investment potential. Don't miss out on the chance to own a renovated home in a sought-after neighborhood with stunning views.
Investment Financials
How much does the home cost?
$350,000
How much will it earn in rent?
$2,295 per month
How much will it cost to renovate?
The estimated renovation cost for this property is $4,500.
How much cash can you take home in the first year?
In the first year, you can expect to generate a healthy cash flow from this property, amounting to -$126 per month. While there may be a small negative cash flow initially, this is a common scenario for real estate investments as expenses are accounted for. It's important to focus on the long-term potential of this property, considering factors such as appreciation, tax benefits, and the opportunity to increase rent over time. With careful management and strategic planning, this investment has the potential to generate substantial returns in the future.
What is the cap rate for this property?
The estimated cap rate for this property is 5.0%.
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 located in the southeastern part of the United States, specifically in the state of Tennessee. It sits along the Tennessee River, near the border with Georgia. Chattanooga is nestled between the Appalachian Mountains and the Cumberland Plateau, offering beautiful natural scenery and outdoor recreational opportunities. Known for its vibrant arts and music scene, as well as its rich history and revitalized downtown area, Chattanooga is a popular destination for residents and visitors alike.
What companies are the major employers in and around Chattanooga, Tennessee?
- Volkswagen Group of America: Volkswagen operates a large automotive assembly plant in Chattanooga, employing thousands of workers and contributing significantly to the local economy.
- BlueCross BlueShield of Tennessee: As the state's largest health insurance provider, BlueCross BlueShield employs a significant number of people in Chattanooga, offering a range of career opportunities in the healthcare sector.
- Tennessee Valley Authority (TVA): TVA is a federally owned corporation that provides electricity to the region. Its headquarters are located in Chattanooga, and it employs a considerable workforce in power generation, energy distribution, and environmental stewardship.
- Erlanger Health System: Erlanger is a leading healthcare system in Chattanooga, comprising several hospitals, clinics, and medical facilities. It provides employment opportunities for medical professionals and support staff.
- Amazon: Chattanooga is home to an Amazon fulfillment center, contributing to the region's logistics and e-commerce sector. The facility employs a significant number of workers in warehousing and distribution operations.
- Unum Group: Unum is a Fortune 500 insurance company with a substantial presence in Chattanooga. It offers a range of insurance and financial services, employing professionals in areas such as underwriting, claims, customer service, and more.
- McKee Foods Corporation: McKee Foods, known for brands like Little Debbie snacks, has its headquarters and major production facilities in Collegedale, a suburb of Chattanooga. It provides employment opportunities in manufacturing, logistics, and administration.
- CBL Properties: CBL is a real estate investment trust (REIT) focused on owning and managing shopping malls and retail properties. The company is headquartered in Chattanooga and employs professionals in various areas of real estate and property management.
What are the demographics of Chattanooga, Tennessee?
Chattanooga, Tennessee is a diverse city with a population of approximately 183,000 residents, ranking it as the fourth-largest city in the state. The city is characterized by its multicultural makeup, consisting of various racial and ethnic groups. Chattanooga is home to a significant percentage of White, African American, and Hispanic or Latino residents, as well as communities representing Asian, Native American, and other ethnic backgrounds.
In terms of age distribution, Chattanooga boasts a diverse demographic profile. The city attracts young professionals, families, and retirees, partly due to the presence of universities and colleges in the area. Institutions such as the University of Tennessee at Chattanooga contribute to the city's youthful energy and provide opportunities for higher education.
Chattanooga's educational landscape offers a range of learning opportunities. The city is home to respected educational institutions, including universities and colleges, providing avenues for academic pursuits and skills development.
Income levels in Chattanooga vary across different neighborhoods and demographics. The city encompasses middle-class communities, along with areas with varying income levels. Chattanooga generally has a lower cost of living compared to many other major cities in the United States.
The local economy in Chattanooga is diverse, with employment opportunities in various sectors. While the city has a history rooted in manufacturing, it has also experienced growth in industries such as healthcare, technology, tourism, and services. This economic diversification provides job prospects for residents with diverse skills and backgrounds.
What is the Niche neighborhood grade and school grade in Chattanooga, Tennessee?
The Niche website provides ratings and rankings for various aspects of cities, including neighborhoods and schools. According to a report on Niche, Chattanooga, Tennessee has a Full Report Card available, which provides information about the city's neighborhoods.
In terms of school grades, according to Niche rankings, Chickamauga City Schools district in the Chattanooga area is highly regarded. It is described as a great school district for a small town and ranks as the 6th best school district in the Chattanooga area. Additionally, Christian Heritage is recognized as one of the best public high schools in the Chattanooga area, ranking 2nd according to Niche ratings.
What is the property tax rate in Chattanooga, Tennessee?
According to information provided by the City of Chattanooga's Treasury Division, the property tax rate in Chattanooga, Tennessee is currently set at 2.25 per $100 of assessed valuation. Residential properties are assessed at 25% of their appraised value, while commercial properties are assessed at 40% of their appraised value. Property tax collections represent about 59% of the city's general fund annual operating budget.
If you did not receive a tax bill, you can search for a copy of a property tax bill by using the City of Chattanooga Property tax search engine, contacting the Treasury Division by phone or email, or visiting Chattanooga City Hall in person.
It's important to note that while the tax rates are determined by the City Council, the county is responsible for real property assessments, including estimating property values, billing and collecting payments, compliance efforts, and conflict resolution.
To obtain the most accurate and up-to-date information about the property tax rate in Chattanooga, Tennessee, it is recommended to visit the official website of the City of Chattanooga or contact the Treasury Division directly.
How many rental listings and vacancies are in Chattanooga, Tennessee?
According to the available sources, there are several platforms where you can find rental listings in Chattanooga, Tennessee. Realtor.com mentions having 130 houses for rent in Chattanooga, TN, including various types such as affordable, luxury, and pet-friendly rentals.
Zillow also provides houses for rent in Chattanooga, TN, with 119 results available.
Additionally, Rent.com mentions 120 houses for rent in Chattanooga, TN.
What's the average rent in Chattanooga, Tennessee?
Based on the available sources, the average rent in Chattanooga, Tennessee can be described. According to Zillow, the median rent price in Chattanooga for May 2023 is $1,800, showing an increase of $110 compared to May 2022. Additionally, Zumper reports that as of May 14, 2023, the average rent for a 1-bedroom apartment in Chattanooga is $1,282.
Rentcafe provides insights into the affordability of different neighborhoods in Chattanooga. The most affordable neighborhoods in terms of average rent are 21st Century, Hilltop, and Ridgeside, where the average rent is around $999 per month. Conversely, the most expensive neighborhoods are Glenwood, King's Point, and Riverside, with an average rent of $1,681.
From Listing to Rental
- 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"
- 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.
- 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.
