626 Ohio St #1

Philipsburg, MT 59858

$389,000B+

4 bd · 2.0 ba · 2,774 sqft · Built 2005 · MultiFamily · Active · 2 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,997/mo
• Mortgage (P&I): −$2,040
• Tax + insurance: −$329
• HOA: −$0
• Vac / Maint / Mgmt: −$1,049
• Net cashflow: $1,579/mo
• Annual: $18,949/yr
• Cap rate: 11.16%
• Cash-on-cash: 17.40%
• DSCR: 1.77
• 1% rule: 1.28%
• Cash to close: $108,920

Investor read

• This is a 4 × 3-bed/2.0-bath units multifamily listed at $389k.
• At list price, monthly cash flow is $2k ($19k/yr) — positive. Per door: $395/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($5k rent vs $389k).
• Only 2 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $42k of equity ($3k loan paydown + $39k appreciation (10.0% local appreciation)).
• Location reads 66/100 on livability (#119 in MT) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+; Watch: crime F, amenities F, commute F.
• Philipsburg K-12 Schools (rural): math 40% / reading 65% proficiency, ranked #59 of 339 in MT (top 17%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Philipsburg School (math 34% / reading 44%, grade F, #166 of 293 statewide, top 61%, 94 students, 0% FRL); Philipsburg 7-8 (math 30% / reading 50%, 25 students, 0% FRL); Granite High School (math 10% / reading 50%, grade F, #66 of 132 statewide, top 52%, 62 students, 0% FRL) — zoned schools average 0% FRL vs 31% district-wide (31 pts lower); this property's tenant base skews higher-income than the district average.
• Zoned-school proficiency averages 36% at this address vs 52% district-wide (-16 pts) — the specific schools serving this property underperform the Philipsburg K-12 Schools average; the district grade overstates school quality for this exact location.
• Market conditions: 71 active listings in the ZIP.
• Granite County population projected at +13% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (10.0% appreciation + 3.0% rent growth), your $109k cash investment doubles in ~2 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$67k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.
• Cap rate 11.2% vs local median 1.2% in Philipsburg — 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.

Questions for listing agent

• 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?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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?
• 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 apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.