203 E 2nd St

Libby, MT 59923

$165,000D+

1 bd · 1.0 ba · 680 sqft · Built 1938 · SingleFamily · Active · 161 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,250/mo
• Mortgage (P&I): −$865
• Tax + insurance: −$199
• HOA: −$0
• Vac / Maint / Mgmt: −$262
• Net cashflow: $-77/mo
• Annual: $-918/yr
• Cap rate: 6.22%
• Cash-on-cash: -0.26%
• DSCR: 0.99
• 1% rule: 0.76%
• Cash to close: $46,200

Investor read

• This is a 1-bed/1.0-bath single-family listed at $165k.
• At list price, monthly cash flow is $-77 ($-918/yr) — negative.
• To cash-flow at today's rent, offer at most $151k (8.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $125k (24.2% below list).
• It's been on market 161 days — a 12% lower offer ($145k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $125k (24.2% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 74/100 on livability (#35 in MT, #4,426 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: amenities D, employment D, commute F.
• Libby K-12 Schools (town): math 40% / reading 49% proficiency, ranked #46 of 116 in MT (top 40%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Libby Elementary School (math 44% / reading 50%, grade D-, #101 of 293 statewide, top 39%, 625 students, 0% FRL); Libby Middle School (math 37% / reading 52%, grade D, #41 of 146 statewide, top 35%, 183 students, 0% FRL); Libby High School (math 27% / reading 37%, grade F, #57 of 132 statewide, top 45%, 356 students, 0% FRL) — zoned schools average 0% FRL vs 49% district-wide (49 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: flood insurance adds $66/mo; built in 1938 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 172 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 18 units permitted in Lincoln County in 2024 (0 in 5+ unit buildings).
• Lincoln County population projected at -33% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• Climate carrying-cost: severe flood risk; moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.2% vs local median 2.4% in Libby — 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.

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 161 days. Have you received any prior offers? Is the seller open to a 24% concession, seller financing, or rate buy-down credit?
• Built in 1938 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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 D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?