643 Grantsdale Rd #25

Hamilton, MT 59840

$79,900B-

3 bd · 1.0 ba · 840 sqft · Built 2008 · SingleFamily · Active · 20 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,780/mo
• Mortgage (P&I): −$419
• Tax + insurance: −$133
• HOA: −$0
• Vac / Maint / Mgmt: −$374
• Net cashflow: $854/mo
• Annual: $10,246/yr
• Cap rate: 19.12%
• Cash-on-cash: 45.80%
• DSCR: 3.04
• 1% rule: 2.23%
• Cash to close: $22,372

Investor read

• This is a 3-bed/1.0-bath single-family listed at $80k. Condition is rated fair.
• At list price, monthly cash flow is $854 ($10k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $80k).
• It's been on market 20 days — a 2% lower offer ($79k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $79k (1.5% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $552 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 73/100 on livability (#45 in MT) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+; Watch: crime D+, amenities D+, commute F.
• Hamilton K-12 Schools (town): math 32% / reading 42% proficiency, ranked #74 of 116 in MT (top 64%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Daly School (math 37% / reading 37%, grade F, #182 of 293 statewide, top 66%, 552 students, 0% FRL); Hamilton Middle School (math 29% / reading 43%, grade F, #84 of 146 statewide, top 57%, 480 students, 0% FRL); Hamilton High School (math 32% / reading 57%, grade F, #32 of 132 statewide, top 25%, 558 students, 0% FRL) — zoned schools average 0% FRL vs 39% district-wide (39 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: 195 active listings in the ZIP; 27 units permitted in Ravalli County in 2024 (0 in 5+ unit buildings).
• 4 sale attempts since 2y ago; this cycle's ask has dropped $9k (10%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $22k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: severe wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 19.1% vs local median 2.2% in Hamilton — 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 ($62k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• 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?
• 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?
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.

Repairs flagged (vision-AI assessment)

• Major: Exterior siding — Significant wear and rust
• Major: Foundation repair — Exposed rust and potential structural issues
• Moderate: Window replacement — Some windows appear old and may need replacement