Montana?

9 Replies

I was curious if anybody in the bigger pockets family owns any buy and hold properties in Montana? If so what areas of Montana are a good market for that type of an investment? What is the ROI like and is there more of an interest for single family homes or multiple units per property?

I ma a new investor  Montana, and I know that @Patrick McGowen

 owns a couple of buy and holds in different towns.

I myself am interested in multifamily, but I have noticed that investors here seem to gravitate towards single family homes, even though this is a college area.

There are only one million people in this state, and the ROI is really going to depend on the area your interested in investing in.

Houses where I am are in the 200-250k range for median income people. Go about an hour to the east and houses go to about 40-75k.

Hope that helps

Im not real familiar with where Belgrade Montana would be. i was thinking of more eastern montana somewhere between Baker and Billings, Miles City. 

Belgrade is just outside of Bozeman which is basically a beautiful, quick growing, hip college town. Very pricey, lots of wealthy out of state vacation homes/resorts. I bought a couple quads there during the recession and made out very well. Selling one now and wouldn't pay what the buyer is paying. It's a great long-term/appreciation market but if you want cash-flow look elsewhere.

I'm up in Great Falls. Military base town, very blue collar. Numbers work a lot better here cash-flow wise but appreciation is slow moving. Long term growth prospects? Not so hot, and if anything should happen to the base... man. But otherwise quite a tight rental market and stable recession resistant economy.

Helena is a government town, somewhere in-between the two markets.

I'm a fan of Missoula. Hip fast growing college town in a beautiful area like Bozeman but more affordable. Kalispell is in a similar boat. Gorgeous town, smaller economic base but growing very quickly.

Billings is blue collar but has a solid diverse economy and numbers work OK. It's the economic hub of the state, good long tern growth prospects.

Butte? Numbers work well but weak economic base, stagnant growth, and no real draw.

Eastern Montana was hot a long with oil. I'd be afraid of it now with the oil meltdown though I suppose when it's hurting enough there could be bargains. But it's a flat wasteland (I call it West North Dakota) with no population base and little growth prospects outside of oil. In my opinion it's an oil play.

Overall I'm a fan of MT. Pro-growth policies, swaths of beautiful country that people fall in love with (lots of out of state people visit/stay), and a strong/steady economy.

@Trent Fisher

In a lot of ways Montana is really diverse, but one common theme is low population density.  To quote a really insightful researcher "62 percent of Montanans live in 0.1 percent of the land area. In contrast, 82 percent of the land area in Montana has a population density of less than one person per square mile."  

George covered most of the high points of the diversity in his post, I wouldn't have a lot to add. For Eastern Montana, growth is fueled by .... well fuel (oil), so they are in for some swings currently, be careful.  Billings is probably more stable as it is the largest community in Montana, but the rest of Eastern Montana (Miles City etc.) is small enough that even a small change in population (say 50 oil workers move away because they lose work), can destroy a rental market.  

I would also caution you on Eastern Montana, Some of the towns are doing well because of the Oil boom and alot of the smaller towns had no effect whatsoever.  As a pastor we have quite a few churches in our conference that are out there and so I hear updates all from what is going on. 

Each town is so different depending on size and location to oil field. 

I have a friend who is buying small multifamily in Glasgow and he seems to think that there is little to no impact on their town due to oil.  

Circle however has ALOT of money in it because of the ranchers in the area with oil rights. 

I guess what i am saying is that you should look at each town on its own.  

I invest in Rural Montana and love it.  Small towns are awesome. 

I just read an article yesterday on Americas top 10 states to retire in, in 2014.  Montana was #1 This place is awesome! 

I read a similar article that Forbes put out a few days ago "The best places to retire in 2015". It was a top 25 list which had Great Falls, MT at number 12...

http://www.forbes.com/sites/williampbarrett/2015/03/17/the-best-places-to-retire-in-2015-2/

PROS: Strong economy and low unemployment on the banks of the Missouri River. Cost of living 2% below national average, average home $172,000, good tax climate. Above average air quality. High number of doctors per capita, high Milken aging rank, low serious crime rate.

CON: Cold winters. NOTED: Average walkability. Population 60,000. Newcomer to list.

George I'd love to connect. I'm an American in Calgary, AB Canada and Great Falls is one of the closest cities to me up here. Please PM me when you have a chance.

Are there any other BP members in Great Falls and Butte area?

I live in Butte and am investor in Butte. I own 13 rental units here. Feel free to message me with any questions.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.