The Darrington Townhome Plan

Kalispell, MT 59901

$429,990F

3 bd · 2.5 ba · 1,395 sqft · Built — · SingleFamily · Active · 81 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,380/mo
• Mortgage (P&I): −$2,951
• Tax + insurance: −$938
• HOA: −$0
• Vac / Maint / Mgmt: −$500
• Net cashflow: $-2,009/mo
• Annual: $-24,107/yr
• Cap rate: 2.01%
• Cash-on-cash: -15.30%
• DSCR: 0.32
• 1% rule: 0.42%
• Cash to close: $157,584

Investor read

• This is a 3-bed/2.5-bath single-family listed at $430k. Condition is rated good.
• At list price, monthly cash flow is $-2k ($-24k/yr) — negative.
• To cash-flow at today's rent, offer at most $272k (36.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $238k (44.6% below list).
• It's been on market 81 days — a 6% lower offer ($404k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $238k (44.6% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $17k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#61 in MT) — a middle-class / working-renter tenant base. Strengths: health & safety A+, cost of living A, housing A-; Watch: crime C-, commute F, employment D-.
• Flathead H S (town): math 29% / reading 52% proficiency, ranked #55 of 116 in MT (top 47%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: West Valley School (math 54% / reading 61%, grade C+, #51 of 293 statewide, top 17%, 424 students, 0% FRL); West Valley Middle School (math 48% / reading 61%, grade B-, #15 of 146 statewide, top 14%, 338 students, 0% FRL); Glacier High School (math 36% / reading 55%, grade D-, #31 of 132 statewide, top 23%, 1,475 students, 0% FRL).
• Zoned-school proficiency averages 52% at this address vs 40% district-wide (+12 pts) — the actual schools serving this property are materially stronger than the Flathead H S average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: Rents rising (+2.4%/yr); 867 active listings in the ZIP; 7 comparable units currently listed for rent nearby; rentals at typical pace (median 22d on market — plan ~3-4 weeks tenant-placement turnaround); 281 units permitted in Flathead County in 2024 (80 in 5+ unit buildings).
• Flathead County population projected at +20% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• This rent runs 39% of the median local income ($73k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 81 days. Have you received any prior offers? Is the seller open to a 45% 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?
• 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.