212 Chappell St

Loma, MT 59460

$194,900D

4 bd · 2.0 ba · 2,688 sqft · Built 1956 · SingleFamily · Pending · 69 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,495/mo
• Mortgage (P&I): −$1,022
• Tax + insurance: −$163
• HOA: −$0
• Vac / Maint / Mgmt: −$314
• Net cashflow: $-4/mo
• Annual: $-44/yr
• Cap rate: 6.27%
• Cash-on-cash: -0.08%
• DSCR: 1.00
• 1% rule: 0.77%
• Cash to close: $54,572

Investor read

• This is a 4-bed/2.0-bath single-family listed at $195k.
• At list price, monthly cash flow is $-4 ($-44/yr) — negative.
• To cash-flow at today's rent, offer at most $194k (0.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $150k (23.3% below list).
• It's been on market 69 days — a 6% lower offer ($183k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $150k (23.3% below list) — sets the bar for 1% rule.
• In year one you build about $7k of equity ($1k loan paydown + $6k appreciation (3.0% local appreciation)).
• Location reads 60/100 on livability (#211 in MT) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety C-, employment D+, crime F.
• Fort Benton H S (rural): math 40% / reading 40% proficiency, ranked #146 of 339 in MT (top 43%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Fort Benton School (math 67% / reading 67%, grade B+, #18 of 293 statewide, top 7%, 195 students, 0% FRL); Fort Benton 7-8 (math 54% / reading 74%, grade A-, #4 of 146 statewide, top 4%, 54 students, 0% FRL); Fort Benton High School (math 30% / reading 70%, grade D+, #9 of 132 statewide, top 17%, 107 students, 0% FRL).
• Zoned-school proficiency averages 60% at this address vs 40% district-wide (+20 pts) — the actual schools serving this property are materially stronger than the Fort Benton H S average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: built in 1956 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 1 active listings in the ZIP; 16 units permitted in Chouteau County in 2024 (0 in 5+ unit buildings).
• Chouteau County population projected at +8% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• 11 sale attempts since 3y 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.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $55k cash investment doubles in ~7 years — after that, you're playing with house money.
• By year 5, paydown + projected appreciation supports a ~$31k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

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 69 days. Have you received any prior offers? Is the seller open to a 23% concession, seller financing, or rate buy-down credit?
• Built in 1956 — 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 F-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 F 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?
• 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?