All Forum Posts by: Brady Potts

Heidi,

All of the above actually. Sales and rents are increasing and demand in steadily climbing as well. 

At a 250k price point your probably close to market average in those areas. Missoula median home price is 415k, and anything listed under 400k, usually goes for 10-25% over ask. 

I can't speak to the competition in Butte or Anaconda though. 

Count me in, Keith!

Angela,

I work in title insurance and actively invest here in Missoula. Feel free to PM me and I can pass along some great contacts.

Heidi, 

I work with lots of Missoula agents through my work in title insurance. Feel free to PM me and I can pass along some contacts for up here.

Heidi,

You're spot on with Missoula, Bozeman, and Kalispell. We have 4 units in Missoula and it was a slog to find them. 

I have several friends that are going bananas in Butte because Bozeman is pushing everybody that far out. However, I dont know much about the market itself. The major industry back in the day is the now defunct mine. Other than a small college there's not much there. 

Anaconda is kind of similar. It was heavily dependent on the mine too. It's close-ish to Helena but other than thats its kind of far from the other big draws of Missoula and Bozeman.

What type of properties are you looking for?

Hi Justin,

Apparently Bozeman is no good, so come down to Missoula! I've personally live-in BRRR'd 2 duplexes in the past 24 months here with AMAZING returns. The market is hot, not quite like Bozeman, but getting close. However, unlike Bozeman, Missoula has a plethora of older homes and a focus on increasing density vs sprawl.

Feel free to shoot me a PM. I would be down to hop on the phone and chat about my experience. 

Best of luck!

Congrats! That sounds like a sweet deal. We are currently in our first BRRRR down there, smack in the middle of rehab.

What were some of the key takeaways you learned on this one compared to your first?

Regarding your rehab budget:

30k/8 units is $3750/unit. Im not sure what you are looking to do, but even the basic items would be as follows, assuming a 500sqft unit:

4000 sq ft of flooring (500x8) x $5/sqft ($2 material, $3 labor)= $20,000

4800 sq ft of paint (600x8), 350sqft/gallon @ $35/ gallon x $2.50/sqft labor = $12,480

Appliances for 8 units (Fridge, Stove) = $8000 

That right there is almost $40,000. But if you're planning on doing everything yourself, that could change.

This is also before checking all the HVAC, water heaters, baseboard heaters, exterior paint, roof, etc, cabinets, etc.

Hi Theresa,

I'm always a fan of holding rentals in an LLC for liability purposes and helping to keep clean, separate records. It costs about $70 through the state and 30 minutes of effort. However, some accountants charge about $300 to file the business return so keep that in mind. You can also hold multiple properties in the same LLC until you have a fair amount if equity in an individual property, which you can then break off into a separate LLC.

Be sure that whatever loan program you are working with won't call your loan if you do transfer to an LLC. Most lenders understand what you are trying to do, but its always best to check. As long as you (and your spouse) are the LLC members there normally isn't an issue.

For any Missoula investors on here, this is probably the most informational and helpful event to attend. Matt, Claire, Nick, Sara and the entire Sterling CRE team really know their market l, and the presentation has practical, useful, and relevant data surrounding the market and current trends. Highly reccomend.