1031 4th Ave W

Kalispell, MT 59901

$510,000D+

2 bd · 1.0 ba · 2,070 sqft · Built 1935 · MultiFamily · Active · 99 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,094/mo
• Mortgage (P&I): −$2,674
• Tax + insurance: −$547
• HOA: −$0
• Vac / Maint / Mgmt: −$860
• Net cashflow: $13/mo
• Annual: $155/yr
• Cap rate: 6.32%
• Cash-on-cash: 0.11%
• DSCR: 1.00
• 1% rule: 0.80%
• Cash to close: $142,800

Investor read

• This is a 2 × 2-bed/1-bath units multifamily listed at $510k. Condition is rated fair.
• At list price, monthly cash flow is $13 ($155/yr) — positive. Per door: $6/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $409k (19.7% below list).
• It's been on market 99 days — a 9% lower offer ($464k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $409k (19.7% 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 $15k 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: Elrod School (math 27% / reading 52%, grade F, #166 of 293 statewide, top 61%, 231 students, 0% FRL); Kalispell Middle School (math 50% / reading 61%, grade B-, #13 of 146 statewide, top 8%, 1,045 students, 0% FRL); Flathead High School (math 22% / reading 50%, grade F, #50 of 132 statewide, top 37%, 1,626 students, 0% FRL).
• Watch-outs: built in 1935 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising (+2.4%/yr); 813 active listings in the ZIP; 26 comparable units currently listed for rent nearby; rentals leasing fast (median 2d on market — plan ~1-2 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.
• 6 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 6.3% vs local median 2.1% in Kalispell — 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 per unit runs 34% of the median local income ($73k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• It's been on market 99 days. Have you received any prior offers? Is the seller open to a 20% 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?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1935 — 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?

Repairs flagged (vision-AI assessment)

• Minor: Kitchen cabinets — Slight wear on the cabinet doors.
• Minor: Bathroom fixtures — Some discoloration on the shower curtain rod.
• Minor: Landscaping — Some weeds and overgrown grass in the front yard.