414 /418 Buchanan St SW Unit 414,414 1/2, 418 & 418 1/2

Ronan, MT 59864

$530,000C

6 bd · 5.1 ba · 4,093 sqft · Built 1937 · MultiFamily · Active · 239 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,045/mo
• Mortgage (P&I): −$2,779
• Tax + insurance: −$883
• HOA: −$0
• Vac / Maint / Mgmt: −$1,269
• Net cashflow: $1,113/mo
• Annual: $13,354/yr
• Cap rate: 8.81%
• Cash-on-cash: 9.00%
• DSCR: 1.40
• 1% rule: 1.14%
• Cash to close: $148,400

Investor read

• This is a 3 × 2-bed/1.7-bath units multifamily listed at $530k. Condition is rated fair.
• At list price, monthly cash flow is $1k ($13k/yr) — positive. Per door: $371/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($6k rent vs $530k).
• It's been on market 239 days — a 12% lower offer ($466k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $466k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $16k 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: schools D+, crime F, amenities 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.
• Watch-outs: built in 1937 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 49 active listings in the ZIP; 19 units permitted in Lake County in 2024 (0 in 5+ unit buildings).
• 2 sale attempts 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.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 8.8% 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 239 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1937 — 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?

Repairs flagged (vision-AI assessment)

• Major: roof — The roof appears to be in poor condition and may need to be replaced.
• Major: exterior siding — The exterior siding is peeling and in need of repainting.
• Major: flooring — The flooring in the kitchen and living areas appears to be carpeted and in need of replacement.
• Major: interior walls — The interior walls show signs of wear and tear, with some discoloration and potential damage.
• Major: bathrooms — The bathrooms appear to be in poor condition, with outdated fixtures and potential plumbing issues.
• Major: kitchen cabinets — The kitchen cabinets are outdated and in need of replacement.