221 Main St

Roy, MT 59471

$125,000D-

1 bd · 2.0 ba · 608 sqft · Built 1994 · SingleFamily · Active · 52 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $814/mo
• Mortgage (P&I): −$656
• Tax + insurance: −$78
• HOA: −$0
• Vac / Maint / Mgmt: −$171
• Net cashflow: $-90/mo
• Annual: $-1,078/yr
• Cap rate: 5.43%
• Cash-on-cash: -3.08%
• DSCR: 0.86
• 1% rule: 0.65%
• Cash to close: $35,000

Investor read

• This is a 1-bed/2.0-bath single-family listed at $125k.
• At list price, monthly cash flow is $-90 ($-1k/yr) — negative.
• To cash-flow at today's rent, offer at most $109k (12.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $81k (34.9% below list).
• It's been on market 52 days — a 3% lower offer ($121k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $81k (34.9% below list) — sets the bar for 1% rule.
• In year one you build about $1k of equity ($864 loan paydown + $396 appreciation (0.3% local appreciation)).
• Location reads 60/100 on livability (#227 in MT) — a middle-class / working-renter tenant base. Strengths: cost of living A+, crime A; Watch: health & safety C-, amenities F, commute F.
• Roy K-12 Schools (rural): math 25% / reading 25% proficiency, ranked #94 of 116 in MT (top 81%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Roy School (6 students, 0% FRL); Roy 6-8 (6 students, 0% FRL); Roy High School (6 students, 0% FRL) — zoned schools average 0% FRL vs 32% district-wide (32 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: 7 active listings in the ZIP; 4 units permitted in Fergus County in 2024 (0 in 5+ unit buildings).
• Fergus County population projected to shrink 9% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• Climate carrying-cost: moderate flood risk; major wildfire risk — expect insurance premiums to compound above CPI over the hold.

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 52 days. Have you received any prior offers? Is the seller open to a 35% concession, seller financing, or rate buy-down credit?
• 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?
• 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?
• 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.