Grand Manor 6009 - BOYL Plan

Missoula, MT 59808

$261,900D

3 bd · 2.0 ba · 1,998 sqft · Built — · Manufactured · Active · 123 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,341/mo
• Mortgage (P&I): −$1,373
• Tax + insurance: −$436
• HOA: −$0
• Vac / Maint / Mgmt: −$492
• Net cashflow: $40/mo
• Annual: $476/yr
• Cap rate: 6.47%
• Cash-on-cash: 0.65%
• DSCR: 1.03
• 1% rule: 0.89%
• Cash to close: $73,332

Investor read

• This is a 3-bed/2.0-bath manufactured listed at $262k. Condition is rated good.
• At list price, monthly cash flow is $40 ($476/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $234k (10.6% below list).
• It's been on market 123 days — a 12% lower offer ($230k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $230k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#17 in MT, #2,351 nationally) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, health & safety A+; Watch: employment C-, crime F.
• Missoula H S (urban): math 31% / reading 52% proficiency, ranked #53 of 116 in MT (top 46%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Hellgate Elem Lower Grades (math 47% / reading 57%, grade C-, #69 of 293 statewide, top 27%, 338 students, 0% FRL); Hellgate Middle School (math 46% / reading 64%, grade B-, #14 of 146 statewide, top 9%, 329 students, 0% FRL); Big Sky High School (math 21% / reading 37%, grade F, #74 of 132 statewide, top 56%, 1,186 students, 0% FRL).
• Market conditions: Rents rising (+2.4%/yr); 246 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 773 units permitted in Missoula County in 2024 (354 in 5+ unit buildings).
• Missoula County population projected at +23% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 6.5% vs local median 1.7% in Missoula — 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.
• This rent runs 35% of the median local income ($80k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• It's been on market 123 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• 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 B-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 F 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?
• 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.