208 2nd Ave SW

Brady, MT 59416

$240,000D

4 bd · 2.0 ba · 1,608 sqft · Built 1974 · Manufactured · Active · 87 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,508/mo
• Mortgage (P&I): −$1,259
• Tax + insurance: −$149
• HOA: −$0
• Vac / Maint / Mgmt: −$317
• Net cashflow: $-217/mo
• Annual: $-2,602/yr
• Cap rate: 5.21%
• Cash-on-cash: -3.87%
• DSCR: 0.83
• 1% rule: 0.63%
• Cash to close: $67,200

Investor read

• This is a 4-bed/2.0-bath manufactured listed at $240k.
• At list price, monthly cash flow is $-217 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $202k (16.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $151k (37.2% below list).
• It's been on market 87 days — a 6% lower offer ($226k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $151k (37.2% below list) — sets the bar for 1% rule.
• In year one you build about $24k of equity ($2k loan paydown + $22k appreciation (9.2% local appreciation)).
• Location reads 64/100 on livability (#149 in MT) — a middle-class / working-renter tenant base. Strengths: employment A+, cost of living A+, crime A; Watch: health & safety C-, amenities F, commute F.
• Dutton/Brady K-12 Schools (rural): math 35% / reading 45% proficiency, ranked #143 of 339 in MT (top 42%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Market conditions: 5 active listings in the ZIP.
• Pondera County population projected to shrink 7% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• By year 2, paydown + projected appreciation supports a ~$38k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 87 days. Have you received any prior offers? Is the seller open to a 37% concession, seller financing, or rate buy-down credit?
• Built in 1974 — 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.
• 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.
• 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.