504 1st St S

Sunburst, MT 59482

$135,000B-

3 bd · 2.0 ba · 1,568 sqft · Built 1987 · SingleFamily · Pending · 2 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,504/mo
• Mortgage (P&I): −$708
• Tax + insurance: −$225
• HOA: −$0
• Vac / Maint / Mgmt: −$316
• Net cashflow: $255/mo
• Annual: $3,062/yr
• Cap rate: 8.56%
• Cash-on-cash: 8.10%
• DSCR: 1.36
• 1% rule: 1.11%
• Cash to close: $37,800

Investor read

• This is a 3-bed/2.0-bath single-family listed at $135k. Condition is rated poor.
• At list price, monthly cash flow is $255 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $135k).
• Only 2 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $5k of equity ($933 loan paydown + $4k appreciation (3.0% local appreciation)).
• Location reads 68/100 on livability (#91 in MT) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, employment A-; Watch: health & safety C-, crime F, amenities F.
• Sunburst K-12 Schools (rural): math 55% / reading 55% proficiency, ranked #45 of 339 in MT (top 13%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Market conditions: 5 active listings in the ZIP.
• Toole County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 3y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $38k cash investment doubles in ~5 years — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.

Repairs flagged (vision-AI assessment)

• Major: roof — No visible photos of the roof.
• Major: exterior siding — No visible photos of the exterior siding.
• Major: windows — No visible photos of the windows.
• Major: interior walls/paint — No visible photos of the interior walls/paint.
• Major: HVAC/mechanicals — No visible photos of the HVAC/mechanicals.
• Major: landscaping — No visible photos of the landscaping/curb appeal.