116 2nd Ave SE

Harlem, MT 59526

$33,500B+

2 bd · 1.0 ba · 1,112 sqft · Built 1912 · SingleFamily · Pending

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,035/mo
• Mortgage (P&I): −$176
• Tax + insurance: −$56
• HOA: −$0
• Vac / Maint / Mgmt: −$217
• Net cashflow: $586/mo
• Annual: $7,034/yr
• Cap rate: 27.29%
• Cash-on-cash: 74.99%
• DSCR: 4.34
• 1% rule: 3.09%
• Cash to close: $9,380

Investor read

• This is a 2-bed/1.0-bath single-family listed at $34k.
• At list price, monthly cash flow is $586 ($7k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $34k).
• Only 0 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $3k of equity ($232 loan paydown + $3k appreciation (9.3% local appreciation)).
• Location reads 63/100 on livability (#167 in MT) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: health & safety C-, crime F, amenities F.
• Harlem H S (rural): math 11% / reading 11% proficiency, ranked #280 of 339 in MT (top 83%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Watch-outs: built in 1912 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 2 active listings in the ZIP.
• Blaine County population projected at +10% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (9.3% appreciation + 3.0% rent growth), your $9k cash investment doubles in ~1 year — after that, you're playing with house money.
• By year 9, paydown + projected appreciation supports a ~$34k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Built in 1912 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 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.