40 Crane Ave

Stockett, MT 59480

$185,000D-

2 bd · 1.0 ba · 1,211 sqft · Built 1911 · SingleFamily · Active · 87 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,145/mo
• Mortgage (P&I): −$970
• Tax + insurance: −$148
• HOA: −$0
• Vac / Maint / Mgmt: −$240
• Net cashflow: $-213/mo
• Annual: $-2,561/yr
• Cap rate: 4.91%
• Cash-on-cash: -4.94%
• DSCR: 0.78
• 1% rule: 0.62%
• Cash to close: $51,800

Investor read

• This is a 2-bed/1.0-bath single-family listed at $185k.
• At list price, monthly cash flow is $-213 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $147k (20.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $114k (38.1% below list).
• It's been on market 87 days — a 6% lower offer ($174k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $114k (38.1% below list) — sets the bar for 1% rule.
• In year one you build about $17k of equity ($1k loan paydown + $16k appreciation (8.6% local appreciation)).
• Location reads 61/100 on livability (#193 in MT) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A-; Watch: employment C-, health & safety C-, crime F.
• Centerville Elementary (rural): math 40% / reading 50% proficiency, ranked #104 of 339 in MT (top 31%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Centerville School (math 34% / reading 34%, grade F, #197 of 293 statewide, top 71%, 116 students, 0% FRL); Centerville 6-8 (math 34% / reading 64%, grade C, #26 of 146 statewide, top 22%, 55 students, 0% FRL); Centerville High School (math 24% / reading 24%, grade F, #80 of 132 statewide, top 80%, 69 students, 0% FRL) — zoned schools average 0% FRL vs 34% district-wide (34 pts lower); this property's tenant base skews higher-income than the district average.
• Watch-outs: built in 1911 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 2 active listings in the ZIP; 223 units permitted in Cascade County in 2024 (37 in 5+ unit buildings).
• Cascade County population projected to shrink 5% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 6 sale attempts since 3y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• By year 3, paydown + projected appreciation supports a ~$43k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: moderate 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 87 days. Have you received any prior offers? Is the seller open to a 38% concession, seller financing, or rate buy-down credit?
• Built in 1911 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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?
• 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?
• 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?