318 & 320 N 19th Ave

Bozeman, MT 59718

$749,999B

6 bd · 2.0 ba · 2,500 sqft · Built 1973 · MultiFamily · Active · 652 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $11,056/mo
• Mortgage (P&I): −$3,933
• Tax + insurance: −$675
• HOA: −$0
• Vac / Maint / Mgmt: −$2,322
• Net cashflow: $4,126/mo
• Annual: $49,511/yr
• Cap rate: 12.89%
• Cash-on-cash: 23.58%
• DSCR: 2.05
• 1% rule: 1.47%
• Cash to close: $210,000

Investor read

• This is a 4 × 3-bed/1.0-bath units multifamily listed at $750k.
• At list price, monthly cash flow is $4k ($50k/yr) — positive. Per door: $1k/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($11k rent vs $750k).
• It's been on market 652 days — a 12% lower offer ($660k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $660k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $5k of loan paydown is wiped out by about $22k of value loss. Plan a longer hold.
• Location reads 85/100 on livability (#1 in MT, #537 nationally) — a professional / high-income tenant draw. Strengths: schools A+, amenities A+, commute A+; Watch: crime D, cost of living D-.
• Bozeman Elementary (town): math 56% / reading 66% proficiency, ranked #7 of 116 in MT (top 6%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; only 18% free/reduced lunch — higher-income household profile.
• Market conditions: Rents soft (-0.6%/yr); 522 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 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.
• 3 sale attempts since 2y ago; this cycle's ask is 45354% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• At projected returns (-3.0% appreciation + 0.0% rent growth), your $210k cash investment doubles in ~7 years — after that, you're playing with house money.
• Cap rate 12.9% vs local median 2.0% in Bozeman — 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 $11,056/mo this rent would consume 134% of the median local household income ($99k/yr) (locally 1786% 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 652 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?
• Built in 1973 — 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 A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• Crime grade is D in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?