Montana? Anybody invested there and have thoughts?

Question

Wondering if you've invested in Montana.  What cities/areas are best? Any other thoughts about Montana?

Mike Ormsby · Answer

I'd also echo what Ian and Corey said.  I'm an agent in Billings and things here are not appreciating like in Missoula or Bozeman, but we've always had steady growth while also avoiding the major corrections that inevitably happen in high demand areas.

In Billings, I'd say people that have the best success have cash or conventional loan with 20-30% down, can do the work themselves, and are patient.  Contractors for remodels are expensive here, and thats if you can find one that will show up on time and complete the project in a timely way. Many contractors have been busy making $ hand over fist for the last 8 years doing roofing and siding jobs since Billings has been hit by 4 major hail storms.  Other contractors have stuck to new construction since it's often easier than a remodel.

The Billings economy has taken a bit of a hit lately as have many other places.  We have typically been bolstered by 4 major sectors, but all are in a bit of a funk and listed below:

Healthcare.  We have 3 major medical providers that service a large radius, St. Vincent's Health Care, Billings Clinic, and Riverstone Health. They are our city's largest employers.

Oil.  We have many businesses that work in and around eastern Montana and the Bakken.  Oil prices are down and it's been a noticeable hit.

Financial Service: There are many midsized banks, community banks, and support centers based here.  First Interstate is a national bank that comes to mind.

Agriculture: Being that Billings is Montana's largest city, and due to its location (central MT), there is a huge amount of farming, ranching, equipment, and supply chain support that comes through or is based here due to the Ag economy.  Prices have been depressed for a while for cattle, wheat, hay, soy beans, and sugar beets....which has had a negative effect.

Overall it's not as bleak as I'm painting it to be, I just want to be real.  We are still experiencing price appreciation currently but a lot of that can be attributed to the lack of housing supply on the market.  With interest rates as low as they've been for as long as they have, I feel people are just staying put longer.  Happy hunting!

Corey Stubbs · Answer

Hi @Camille T., I have been actively investing in flip-homes in Great Falls, MT for the past three years.  I would not necessarily look for flip homes in this area unless you can buy right, which is more often then not right before it gets on the market- which means you need a real estate agent that is on the same page as you for what kind of home you are looking for.

I would say Great Falls is most suitable for getting into Buy & Hold scenarios.  The market is stabilized by a couple points but the biggest being because of the Air Force base here.  Also a nice thing to note, the city is full of "lifers" (people who will find a spot to live and stay there forever and are consistently paying rent) and then there is also the Air Force crew that is here allowing for turn-over tenants every 2-4 years which can give you opportunity to raise rents as needed in-between tenants.

Depending on your strategy you can't really lose out on Great Falls.  I would agree with @Ian Boyd and his assessment of Billings, Great Falls, and Butte are all easier investments to get into, but Great Falls will offer you the most cash flow.  Also, definitely hear @Ian Boyd as he mentions the Bozeman/Flathead/Missoula areas as they are the most outrageously priced places in Montana at this time-But that doesn't mean you shouldn't keep an ear out for a gem.  I personally don't believe in investing in real estate speculatively (invest now hoping something will be of great value later).  I either make money with something now by monthly cashflow or I force appreciate the value of the home, to again, make money now.  If I can't do either in Montana I'm doing something wrong.

Ian Boyd · Answer

I am in Bozeman, but in my Real Estate Agent Opinion it really depends on what you are looking for with your investment. Bozeman/Flathead/Missoula for example is expensive(cash flow not great) but appreciation is very likely. Billings, Great Falls, and Butte is much less expensive so better cash flows, but not as much appreciation. This is a general statement that does not fit every scenario perfectly. Feel free to reach out. If you need an agent I know many across the state I would be happy to refer you to them. I am also an agent in Bozeman so if you dont already have an agent I can answer questions and get you access to the MLS if need be.

Thanks,

-IB

Thanks,

-IB

Michael Rutkowski · Answer

I'm an agent, property manager, and investor in Montana, specializing in Madison, Park, and Gallatin Counties. It's not too late to buy in Montana, but it's not a buyer's market for SFH's. We have had a 7% increase in SFH prices over last year. Condos down 11%. To me this indicates a trend of people escaping the coasts/Covid, and moving to Montana to raise their kids.

I specialize in working with investors, and multi-families. With that said, I have some unique and effective strategies to make a purchase and building affordable. If you are interested shoot me a message.

I've also been running a STR management company throughout this pandemic... It's been a rollercoaster to say the least... But we are still alive and well! Guests are coming back, and we have alternative solutions for all of our clients and ourselves. This is the main strategy people are turning to in Bozeman, Livingston, Big Sky, West Yellowstone, and Gardiner. If you're looking in those cities, then that may be your only option. If you are open to a build, I can lay out a plan for you.

Tyler Warne · Answer

Which market? I have a few in Helena, but there are so many markets and we have Bozeman where I see flips that have $400,000 spreads to rural areas where it is easy to find a 1% deal, or Billings which has had some market decline since oil has sucked so much. Let me know what you are looking for and maybe I can help you.

Nathan Gesner · Answer

I live in Cody, Wyoming and Montana has the nearest large city (Billings). I was very interested in Great Falls (prior military and I like Montana) but I reached out to multiple investors, wholesalers, and REALTORS in the area and didn't get a response so I gave up and kept investing locally.

I think it's too late to jump on the Bozeman, Missoula, Big Sky market because it's already exploded and sells for a premium. I think there's a ton of potential in Billings or Laurel. I even saw some good deals in the Great Falls MLS which indicates there are probably a lot of off-market opportunities. I don't know any other markets.

Wyatt Johnson · Answer

I have two houses in Billings that I rent out by the room, but I don't want to scale up this way because it is four times the tenants that I have to deal with. Cash flowing deals in can be harder to find in Billings than in some of the Midwest markets I hear about, but Billings has been a stable market for a long time.

Like @Mike Ormsby said, getting good contractors here is a pain. I'm an electrician so I work with a lot of these guys on other jobs, and I still have a hard time getting them to show up.

@Nathan G. brought up the fact that Laurel has a lot of potential, and I would agree. The housing prices there are better than Billings, and they haven't seen the expansion in multifamily apartments that Billings has. They just got a new interchange finished in a relatively undeveloped part of the town, and my company is working on a bid for a powerhouse that is supposed to be built there.

Adam Altringer · Answer

Hi Nathan, i am a Real Estate Agent actively working with investors to achieve their Real Estate goals. I work for the largest Real Estate Firm in the area which gives me the unique opportunity to find deals before they are listed on the open market. Most multi-family deals in Great Falls are sold before they make it onto the Multiple Listing Service (MLS) so one has to get creative to find deals here. If you would like any information on the market our if you want to reach out and talk about your investing goals I would be happy to assist you.

Adam Altringer

Dahlquist Realtors Great Falls

Montana? Anybody invested there and have thoughts?

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