Investment Opportunities in Billings Montana

[Laura Stanley]

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?

[Mike Ormsby]

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.