711 Maryland Ave

Butte-Silver Bow (balance), MT 59701

$125,000B

3 bd · 3.0 ba · 2,703 sqft · Built 1910 · MultiFamily · Active · 74 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,640/mo
• Mortgage (P&I): −$656
• Tax + insurance: −$112
• HOA: −$0
• Vac / Maint / Mgmt: −$764
• Net cashflow: $2,108/mo
• Annual: $25,292/yr
• Cap rate: 26.53%
• Cash-on-cash: 72.26%
• DSCR: 4.22
• 1% rule: 2.91%
• Cash to close: $35,000

Investor read

• This is a 3-bed/3.0-bath multifamily listed at $125k.
• At list price, monthly cash flow is $2k ($25k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $125k).
• It's been on market 74 days — a 6% lower offer ($118k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $118k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $864 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads: area grade B — affects rentability + tenant quality, not the cash-flow math above.
• Butte H S (town): math 24% / reading 50% proficiency, ranked #73 of 116 in MT (top 63%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Kennedy School (math 22% / reading 37%, grade F, #223 of 293 statewide, top 79%, 246 students, 0% FRL); East Middle School (math 26% / reading 44%, grade F, #85 of 146 statewide, top 59%, 660 students, 0% FRL); Butte High School (math 24% / reading 50%, grade F, #48 of 132 statewide, top 37%, 1,317 students, 0% FRL).
• Watch-outs: built in 1910 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+10.4%/yr); 325 active listings in the ZIP; 109 units permitted in Silver Bow County in 2024 (25 in 5+ unit buildings).
• Silver Bow County population projected at +8% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 4 sale attempts since 5y 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 + 8.0% rent growth), your $35k cash investment doubles in ~2 years — after that, you're playing with house money.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 26.5% vs local median 2.9% in Butte-Silver Bow (balance) — 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.
• At $3,640/mo this rent would consume 72% of the median local household income ($60k/yr) (locally 1060% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 74 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Built in 1910 — 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.
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.