Yellowstone Real Estate residential or multi

[Gayle Eisner]

Hi all:

I was thinking about investing in a rental property in Gardiner , Montana or maybe Livingston or Bozeman.  Property values are continuing to rise, so I am apprehensive about future potential of appreciation.  What say ya all?  Thanks! Gayle

[Michael Rutkowski]

But basically, if you are looking at multi-family housing anywhere, two key metrics to look at include average household income, and rental prices.

If we figure that once a wage becomes unlivable, then rental prices have to drop. When rents drop, prices drop. Bozeman is at that stage. A family of two working adults can just barely make ends meet in town. With that said, there seems to be some magical money floating around town. No one seems to have a job, but can afford plenty of lattes. Lots of flashy cars, and clothes. And of course, LOTS of new faces. I'm guessing it is parentally subsidized, if you know what I mean.

Outside of town, and further afield it is slightly better. So there has to be something to justify the rental prices in Bozeman, and currently that is lack of rentals. But I drive around the valley a lot, and I'm telling you that the next wave of lower to moderately priced residential real estate to hit the market will be a tsunami.

Livingston would be your best shot right now. It's another town with no vacancies, but also with low wages. There are deals, but your agent needs to be keyed into the local market. Deals disappear here in a few days. Cash is king of course, as it will help you close the deal ASAP. 

Gardiner is a totally seasonal economy, and just run some number on those rentals... You will see that it might not be what you are quite looking for.

I'm always willing to help investors in the area as an agent or as a group sponsor on some investment deals.