206 S Davis St

Belgrade, MT 59714

$869,000D-

8 bd · 4.0 ba · 3,344 sqft · Built 1978 · MultiFamily · Active · 145 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $6,741/mo
• Mortgage (P&I): −$4,557
• Tax + insurance: −$847
• HOA: −$0
• Vac / Maint / Mgmt: −$1,416
• Net cashflow: $-79/mo
• Annual: $-943/yr
• Cap rate: 6.18%
• Cash-on-cash: -0.39%
• DSCR: 0.98
• 1% rule: 0.78%
• Cash to close: $243,320

Investor read

• This is a 3 × 3-bed/1.3-bath units multifamily listed at $869k.
• At list price, monthly cash flow is $-79 ($-943/yr) — negative. Per door: $-26/mo.
• To cash-flow at today's rent, offer at most $855k (1.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $674k (22.4% below list).
• It's been on market 145 days — a 12% lower offer ($765k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $674k (22.4% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $6k of loan paydown is wiped out by about $26k of value loss. Plan a longer hold.
• Location reads 79/100 on livability (#14 in MT, #2,130 nationally) — a middle-class / working-renter tenant base. Strengths: housing A+, health & safety A+, cost of living A-; Watch: commute F.
• Belgrade H S (town): math 28% / reading 46% proficiency, ranked #62 of 116 in MT (top 53%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Heck/Quaw Elementary (math 47% / reading 52%); Belgrade Middle School (math 36% / reading 53%, grade D, #41 of 146 statewide, top 35%, 1,052 students, 0% FRL); Belgrade High School (math 28% / reading 46%, grade F, #48 of 132 statewide, top 37%, 994 students, 0% FRL).
• Market conditions: Rents rising (+1.2%/yr); 249 active listings in the ZIP; 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.
• 5 sale attempts since 6y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Cap rate 6.2% vs local median 2.4% in Belgrade — 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 $6,741/mo this rent would consume 84% of the median local household income ($96k/yr) (locally 647% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

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 145 days. Have you received any prior offers? Is the seller open to a 22% 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 1978 — 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 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?