702 Fergus Ave

Lewistown, MT 59457

$59,000B-

2 bd · 1.5 ba · 1,050 sqft · Built 1983 · Manufactured · Active · 10 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,099/mo
• Mortgage (P&I): −$309
• Tax + insurance: −$98
• HOA: −$0
• Vac / Maint / Mgmt: −$231
• Net cashflow: $461/mo
• Annual: $5,527/yr
• Cap rate: 15.66%
• Cash-on-cash: 33.45%
• DSCR: 2.49
• 1% rule: 1.86%
• Cash to close: $16,520

Investor read

• This is a 2-bed/1.5-bath manufactured listed at $59k. Condition is rated fair.
• At list price, monthly cash flow is $461 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $59k).
• Only 10 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $408 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 67/100 on livability (#111 in MT) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A; Watch: crime F, amenities F, commute F.
• Lewistown Elementary (town): math 44% / reading 54% proficiency, ranked #37 of 116 in MT (top 32%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Highland Park School (math 42% / reading 47%, grade F, #117 of 293 statewide, top 44%, 304 students, 0% FRL); Lewis & Clark School (math 52% / reading 57%, grade B-, #15 of 146 statewide, top 14%, 210 students, 0% FRL); Fergus High School (math 17% / reading 27%, grade F, #108 of 132 statewide, top 83%, 356 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: 136 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.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $17k cash investment doubles in ~4 years — after that, you're playing with house money.
• Climate carrying-cost: moderate flood risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.

Repairs flagged (vision-AI assessment)

• Major: exterior siding — The siding appears to be weathered and in need of replacement.
• Major: interior carpeting — The carpeting is worn and in need of replacement.
• Major: HVAC system — The HVAC system appears to be outdated and may need replacement.