Rental Property Investor · Missoula, MT · Member since 2019 · 85 posts · 35 votes
Hello all,
I am looking for any feedback regarding a deal I am heavily considering. If you are not familiar with the Missoula market, it is hot at the moment (like most) and deals come and go fast. Rents are rapidly increasing here. I saw this one and acted quick and would like to see how other view it.
Cost: $345000
Location: East missoula
Duplex (separated houses) 3bed 1 ba, 2bed 2ba
Separately metered.
2007 build (2/2) & 1920 build (3/1) (07 remodel)
3/1 market rents are $1200 +/- 120 (currently)
2/2 market rents are $1100 +/- $110 (currently)
I will be living in the 2/2 for ~ 1yr (househack)
VA loan used, 30 yr, ~3%
PITI is around $1800/mo
Operating costs living there ~ $250/mo
Operating costs moved out ~ $500/mo
Rents will go up in the coming years and this deal is located next to an area of rapid development and gentrification.
Any input is appreciated and thanks for your time!!
Investor · Missoula, MT · Member since 2015 · 30 posts · 9 votes
5y
Bridger,
Missoulian here as well. Your rental rates seem pretty accurate to me. Though I haven't followed East Missoula vs Missoula much. My concern is your operating costs with the remodeled duplex.
do you know anything about that remodel? Old home remodels can be done really well (everything inside the walls is upgraded) or new drywall could cover up years of hassle for you. Just something to consider. Maybe increase your operating expenses (which seam low) to make sure it still "pencils" for you.
as a house hack it sounds very interesting. Those are my two cents for now.
Investor · Missoula, MT · Member since 2015 · 30 posts · 9 votes
5y
Bridger,
Missoulian here as well. Your rental rates seem pretty accurate to me. Though I haven't followed East Missoula vs Missoula much. My concern is your operating costs with the remodeled duplex.
do you know anything about that remodel? Old home remodels can be done really well (everything inside the walls is upgraded) or new drywall could cover up years of hassle for you. Just something to consider. Maybe increase your operating expenses (which seam low) to make sure it still "pencils" for you.
as a house hack it sounds very interesting. Those are my two cents for now.
Rental Property Investor · Missoula, MT · Member since 2019 · 85 posts · 35 votes
5y
@Jeremiah Purdum
Thanks for your response! My actual operating costs are around $1000/ month after looking. I miss wrote that. But it still pencils as a decent deal for the first one. It is by no means a homerun, but I think its a good enough base hit to get me into the game. It'll be nice not paying rent any more and beginning to build some equity.
I am just about to get an inspection ordered on the property and will certainly make a point to check the older remodeled one. (Its on septic, check electric, plumb, framing, foundation is poured concrete.) Just heard back we are under contract!
Developer · Missoula, MT · Member since 2015 · 60 posts · 28 votes
5y
Thanks fantastic, we are also closing on a duplex in a few weeks here in town. Its exciting to see people find deals in a really tough market. They are here, you just need to put the nose to the grindstone and get it figured out.
Just curious, who are you working through for your VA loan? Seems like to two separate houses and one built in 1920 might have been tough to push through underwriting.
Rental Property Investor · Missoula, MT · Member since 2019 · 85 posts · 35 votes
5y
@Brady Potts
We have ran into some issues do to that very reason. The VA took some nudging and pushing for them to consider it. I worked with Scott Lucier at Envoy Mortgage. He and the team with him are relentless and have been very helpful.