- The Wealth Wagon
- Posts
- Your Daily Dose Of Knowledge! December 28, 2024 - #242
Your Daily Dose Of Knowledge! December 28, 2024 - #242
Today's New Post - Real Estate - Stock Market - Start Your Business - Boost Your Knowledge - More
Welcome Back,
Welcome back everyone, I hope you all had an amazing week and are ready for a great weekend. Today we will be discussing another real estate market and a few things you should know before investing. Enjoy!
Was this email forwarded to you? Click Here to subscribe to never miss a post. If you received this email by accident and wish to unsubscribe click here.
Real Estate Investing
Market Snapshot:
Bozeman, Montana
The Bozeman real estate market is becoming a hotspot for investors, with a median home price of $735,000, reflecting a 4.8% increase year-over-year. As a gateway to Yellowstone National Park and a hub for outdoor enthusiasts, Bozeman attracts a steady flow of new residents and tourists. The inventory remains tight, with only 1,200 active listings, down 8% from last year. The rental market is competitive, with increasing demand for short-term vacation rentals and long-term housing for students at Montana State University. While property prices are relatively high, the area promises strong appreciation potential and lucrative rental income.
Median Home Price: $735,000
YoY Price Growth: 4.8%
Active Listings: 1,200 (down 8% from last year)
Deal Of The Day:
Luxury Condo in Downtown Bozeman, MT
Price: $1,285,000
Size: 3 beds, 4 baths
Monthly Rental Income: $4,800
Cap Rate: 5.8%
This downtown luxury condo is perfectly positioned to capitalize on Bozeman’s tourism boom. With its proximity to restaurants, galleries, and outdoor activities, it generates $4,800/month in rental income. With a cap rate of 5.8%, it offers both cash flow and appreciation potential as Bozeman’s popularity grows.
Deal Rating: 7.25/10
This deal shows great potential for a long term investment but in most cases you will see negative cash flow from this property for a few years. With that said you will see great appreciation YoY and rent increase in the area are high so any negative cash flow may quickly turn positive.
Real Estate Tip:
Investment Strategy:
BRRRR (Buy, Rehab, Rent, Refinance, Repeat)
The BRRRR method allows investors to scale their portfolio quickly by recycling their capital. Purchase a distressed property in Bozeman for $400,000, invest $50,000 in renovations, and rent it for $3,000/month. Refinance after the property’s value increases to $500,000, pull out equity, and reinvest in another property. This strategy works well in high-demand areas with appreciation potential.
Current Interest Rates:
Bozeman, Montana
30-Year Fixed Residential: 7.1%
15-Year Fixed Residential: 6.5%
Commercial Rates: 6.5%+
Interest rates in Bozeman are slightly higher than the national average, reflecting the area’s growing demand and limited inventory. Investors focusing on cash-flowing properties will need to account for these rates in their ROI calculations.
Learn AI in 5 minutes a day
This is the easiest way for a busy person wanting to learn AI in as little time as possible:
Sign up for The Rundown AI newsletter
They send you 5-minute email updates on the latest AI news and how to use it
You learn how to become 2x more productive by leveraging AI
How to Profit in High-Growth, Low-Inventory Markets
Bozeman’s low inventory creates challenges for buyers but also opportunities for investors. One approach is to focus on off-market properties, such as those sold through local connections or wholesalers. Additionally, targeting properties with potential for value-add—like renovations or conversions—can maximize ROI in this competitive market. For example, a historic home near the city center could be converted into a boutique vacation rental, tapping into the area’s tourism demand. While competition is fierce, patience and creativity can lead to significant profits.
Economic Conditions
Bozeman’s economy thrives on tourism, tech, and education. The unemployment rate remains extremely low at 2.3%, with job growth fueled by startups and Montana State University. However, inflation is affecting construction costs, which have risen 6% year-over-year, slowing new developments. Despite this, Bozeman’s strong economy and appeal to remote workers position it as a solid market for long-term investment.
Market Rating: 7/10
This market has the lowest unemployment rate we have ever discussed with just 2.3%. Although great the unemployment rate doesn’t boost this market to much. The high prices, high rates, and high inflation rate makes this market challenging to enter but does show good appreciation YoY and shows great long term potential.
Key Takeaways:
Bozeman Market Update: Median home price $735,000, up 4.8% YoY.
Deal of the Day: $985,000 downtown luxury condo with a 5.8% cap rate.
Tip: Know zoning laws for short-term rentals to maximize opportunities.
Strategy: Use the BRRRR method to scale your portfolio efficiently.
Interest Rates: Residential mortgages at 7.1%, reflecting local demand.
Economic Impact: Low unemployment (2.3%) and rising construction costs shape investment opportunities.
That’s All For Today
I hope you enjoyed today’s issue. If you have any questions regarding today’s issue or future issues feel free to ask. Come back tomorrow for information on how to grow your income and wealth. I hope to see you.
Join our Partner Program and start earning up to $20,000 per month, Click here to sign up.
Email marketing for your business, email us at [email protected]
If you are enjoying our posts feel free to follow our Instagram below it helps us out greatly!👇👇👇 Thank You
Reply