223 1st Ave NE

Brady, MT 59416

$140,000D

1 bd · 1.0 ba · 806 sqft · Built 1925 · SingleFamily · Active · 54 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $926/mo
• Mortgage (P&I): −$734
• Tax + insurance: −$91
• HOA: −$0
• Vac / Maint / Mgmt: −$194
• Net cashflow: $-94/mo
• Annual: $-1,123/yr
• Cap rate: 5.49%
• Cash-on-cash: -2.87%
• DSCR: 0.87
• 1% rule: 0.66%
• Cash to close: $39,200

Investor read

• This is a 1-bed/1.0-bath single-family listed at $140k.
• At list price, monthly cash flow is $-94 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $123k (11.8% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $93k (33.9% below list).
• It's been on market 54 days — a 3% lower offer ($136k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $93k (33.9% below list) — sets the bar for 1% rule.
• In year one you build about $14k of equity ($968 loan paydown + $13k 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.
• Watch-outs: built in 1925 — expect roof / HVAC / electrical / plumbing capex.
• 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 3, paydown + projected appreciation supports a ~$35k 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 54 days. Have you received any prior offers? Is the seller open to a 34% concession, seller financing, or rate buy-down credit?
• Built in 1925 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.