602 Clark St

Deer Lodge, MT 59722

$599,000B

8 bd · 4.0 ba · 3,984 sqft · Built 1994 · MultiFamily · Active · 18 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $8,486/mo
• Mortgage (P&I): −$3,141
• Tax + insurance: −$513
• HOA: −$0
• Vac / Maint / Mgmt: −$1,782
• Net cashflow: $3,049/mo
• Annual: $36,592/yr
• Cap rate: 12.40%
• Cash-on-cash: 21.82%
• DSCR: 1.97
• 1% rule: 1.42%
• Cash to close: $167,720

Investor read

• This is a 11 × 1-bed/?-bath units multifamily listed at $599k.
• At list price, monthly cash flow is $3k ($37k/yr) — positive. Per door: $277/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($8k rent vs $599k).
• It's been on market 18 days — a 2% lower offer ($590k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $590k (1.5% below list) — sets the bar for market timing.
• In year one you build about $26k of equity ($4k loan paydown + $22k appreciation (3.7% local appreciation)).
• Location reads 73/100 on livability (#50 in MT) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A; Watch: crime C-, amenities F, commute F.
• Powell County H S (town): math 30% / reading 30% proficiency, ranked #220 of 339 in MT (top 65%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: O D Speer School (math 27% / reading 47%, grade F, #182 of 293 statewide, top 66%, 336 students, 0% FRL); E F Duvall 7-8 (math 27% / reading 47%, grade F, #78 of 146 statewide, top 55%, 90 students, 0% FRL); Powell County High School (math 15% / reading 34%, grade F, #77 of 132 statewide, top 60%, 186 students, 0% FRL).
• Market conditions: 77 active listings in the ZIP; 53 units permitted in Powell County in 2024 (0 in 5+ unit buildings).
• Powell County population projected at -11% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (3.7% appreciation + 3.0% rent growth), your $168k cash investment doubles in ~3 years — after that, you're playing with house money.
• By year 2, paydown + projected appreciation supports a ~$42k 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 12.4% vs local median 2.3% in Deer Lodge — 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.
• 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.