317 1st Ave SE

Ronan, MT 59864

$215,000D

3 bd · 1.0 ba · 840 sqft · Built 1933 · SingleFamily · Active · 307 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,886/mo
• Mortgage (P&I): −$1,127
• Tax + insurance: −$215
• HOA: −$0
• Vac / Maint / Mgmt: −$396
• Net cashflow: $147/mo
• Annual: $1,767/yr
• Cap rate: 7.11%
• Cash-on-cash: 2.93%
• DSCR: 1.13
• 1% rule: 0.88%
• Cash to close: $60,200

Investor read

• This is a 3-bed/1.0-bath single-family listed at $215k.
• At list price, monthly cash flow is $147 ($2k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $189k (12.3% below list).
• It's been on market 307 days — a 12% lower offer ($189k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $189k (12.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#110 in MT) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing B; Watch: crime F, amenities F, commute F.
• Ronan H S (rural): math 15% / reading 35% proficiency, ranked #252 of 339 in MT (top 74%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: K William Harvey Elem (math 27% / reading 32%, grade F, #223 of 293 statewide, top 79%, 425 students, 0% FRL); Ronan Middle School (math 16% / reading 31%, grade F, #122 of 146 statewide, top 84%, 446 students, 0% FRL); Ronan High School (math 12% / reading 32%, grade F, #108 of 132 statewide, top 83%, 416 students, 0% FRL).
• Watch-outs: built in 1933 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 52 active listings in the ZIP; 19 units permitted in Lake County in 2024 (0 in 5+ unit buildings).
• 4 sale attempts since 4y ago; this cycle's ask has dropped $35k (14%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 7.1% vs local median 3.5% in Ronan — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Questions for listing agent

• It's been on market 307 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1933 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.