Investment Opportunities in Billings Montana

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Hello - is there anyone in the Billings and/or Bozeman Montana market that has any insight oninvestment property opps.  I have been following the Bozeman market extensively for many years (I live there and own two properties) and believe everything is overpriced to serve as rental property, but my networks are pretty limited so my vision could be occuluded.  Anyone investment opportunities you know of in the Bozeman area and/or Billings area?

I'm an agent here in Billings and have sold some places in Bozeman.  The pickings are really slim here in Billings also.  While we are definitely a cheaper market than BZ, the appreciation here has been astronomical for our market. There aren't many properties here that pencil, and even the ones that are borderline, need a lot of work. Doing the work yourself is a must with current material costs and the fact that contractors have more work than what they know to do with.  

The investment housing inventory here is older and in need up updates. The major problem here is the disengagement of past income property owners. (A very broad statement and generalization based on my own observations).  Many of the rental homes or income properties are owned by folks that have sold off family ranch/land in central or eastern MT.  They tend to be older, their kids didn't want to move home and work the land, and they can't keep up with the insane amount of work it takes to keep their land up and running.  So they sell, then 1031 exchange into pick up a bunch of small homes that they don't do a lot of work to and live off the income, while also buying a home here in town near healthcare, amenities, etc.  

Hey Laura, I live in Billings and own two properties here with my third under contract. I have worked in Bozeman quite a bit and I agree with you that the rental numbers aren't great. I don't know much more about the Bozeman market, but I think that I'm pretty well versed in the Billings market. What kind of properties are you looking for?

Thanks for the responses. I’m looking for well kept 3-4 bedroom condo, townhomes, and single family homes that could generate solid cash returns. Bozeman is just so dang overpriced it doesn’t make sense, hoping Billings still has something worth looking at?!

Billings is definitely less overpriced than Bozeman, but we're headed in that direction. When you say solid cash returns, what do you mean in numbers? Like would you buy something for 200k that only rents for 1500 a month? And are rehabs something you want to deal with or would you rather, buy something that's already in good condition?

That price point is iffy but possibly doable, are you including HOA fees in that number? Since I live far away I'd want something mostly turnkey (if Bozeman I do some rehab myself and/or have people I trust to do the work).

Got it. No I'm not including hoa fees in that example because I mostly deal with single family. That example is a .75% price/rent ratio, and finding opportunities better than that in turn key shape is going to be difficult. Billings is turning into more of an appreciation market than a cashflow market now.