28 Yellowstone Spur Rd Unit 28B

Big Sky, MT 59716

$550,000D

1 bd · 1.5 ba · 664 sqft · Built 1973 · Condo · Active · 114 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,000/mo
• Mortgage (P&I): −$2,884
• Tax + insurance: −$388
• HOA: −$575
• Vac / Maint / Mgmt: −$630
• Net cashflow: $-1,477/mo
• Annual: $-17,730/yr
• Cap rate: 3.07%
• Cash-on-cash: -11.51%
• DSCR: 0.49
• 1% rule: 0.55%
• Cash to close: $154,000

Investor read

• This is a 1-bed/1.5-bath condo listed at $550k.
• At list price, monthly cash flow is $-1k ($-18k/yr) — negative.
• To cash-flow at today's rent, offer at most $289k (47.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $300k (45.5% below list).
• It's been on market 114 days — a 9% lower offer ($500k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $289k (47.5% below list) — sets the bar for cash-flow.
• In year one you build about $50k of equity ($4k loan paydown + $46k appreciation (8.4% local appreciation)).
• Location reads 66/100 on livability (#113 in MT) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing B; Watch: schools C-, health & safety C-, amenities F.
• Big Sky School K-12 (rural): math 47% / reading 54% proficiency, ranked #17 of 116 in MT (top 15%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 5% free/reduced lunch — higher-income household profile.
• Market conditions: 261 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 1,706 units permitted in Gallatin County in 2024 (533 in 5+ unit buildings).
• Gallatin County population projected at +61% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• By year 2, paydown + projected appreciation supports a ~$80k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

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 114 days. Have you received any prior offers? Is the seller open to a 47% concession, seller financing, or rate buy-down credit?
• Built in 1973 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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?