504 3rd Ave E

Scobey, MT 59263

$25,000B+

3 bd · 1.0 ba · 924 sqft · Built 1976 · Manufactured · Active · 40 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,028/mo
• Mortgage (P&I): −$131
• Tax + insurance: −$73
• HOA: −$0
• Vac / Maint / Mgmt: −$216
• Net cashflow: $609/mo
• Annual: $7,302/yr
• Cap rate: 35.50%
• Cash-on-cash: 104.32%
• DSCR: 5.64
• 1% rule: 4.11%
• Cash to close: $7,000

Investor read

• This is a 3-bed/1.0-bath manufactured listed at $25k.
• At list price, monthly cash flow is $609 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $25k).
• It's been on market 40 days — a 3% lower offer ($24k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $24k (3.0% below list) — sets the bar for market timing.
• In year one you build about $2k of equity ($173 loan paydown + $2k appreciation (6.9% local appreciation)).
• Location reads 78/100 on livability (#20 in MT, #2,494 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: employment D+, amenities F, commute F.
• Scobey K-12 Schools (rural): math 45% / reading 50% proficiency, ranked #93 of 339 in MT (top 27%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; only 16% free/reduced lunch — higher-income household profile.
• Zoned schools: Scobey School (math 47% / reading 47%, grade D-, #101 of 293 statewide, top 39%, 159 students, 0% FRL); Scobey 7-8 (math 34% / reading 64%, grade C, #26 of 146 statewide, top 22%, 45 students, 0% FRL); Scobey High School (math 10% / reading 30%, grade F, #111 of 132 statewide, top 88%, 82 students, 0% FRL) — zoned schools average 0% FRL vs 16% district-wide (16 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: property tax is 3.0% of price.
• Market conditions: 7 active listings in the ZIP.
• Daniels County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (6.9% appreciation + 3.0% rent growth), your $7k cash investment doubles in ~1 year — after that, you're playing with house money.
• Climate carrying-cost: moderate wildfire risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• It's been on market 40 days. Have you received any prior offers? Is the seller open to a 3% concession, seller financing, or rate buy-down credit?
• Built in 1976 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are A-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?
• 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.