Welcome Back,

Welcome back everyone, I hope your week is going well. Today we will be discussing another real estate market in Montana. On top of this we will also jump into how co-living space renters could potentially double your rental income. Enjoy!

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Real Estate Investing

Daily News Updates:

In a significant political development, Robert F. Kennedy Jr. is set to appear before the Senate for his confirmation hearing as President Donald Trump's nominee for Health Secretary. Kennedy will need to secure support from nearly all Senate Republicans and may also seek votes from Democrats to be confirmed.

• Economic Developments: The Australian Securities Exchange (ASX) 200 index rose by 0.7% to 8,456.8 points, driven by better-than-expected inflation data and a recovery on Wall Street following the DeepSeek incident. The fourth-quarter Consumer Price Index (CPI) increased by 2.4%.

• Environmental Concerns: Victoria, Australia, is facing severe bushfires, with multiple evacuations carried out in Dimboola as six fires rage out of control. The fires have led to the closure of the railway line between Victoria and South Australia, and residents are being urged to remain vigilant.

• Business News: Paige DeSorbo, star of "Summer House," announced on her "Giggly Squad" podcast that she plans to freeze her eggs following her split from Craig Conover. At 32, DeSorbo emphasized the importance of having a fertility safety net as she now navigates her path independently.

• Global Affairs: A tragic incident occurred at the Kumbh Mela festival in Prayagraj, India, where a crowd crush resulted in at least 38 deaths, with numbers feared to be higher. The stampede happened as pilgrims surged forward to bathe at the confluence of the Ganges, Yamuna, and mythical Saraswati rivers.

Market Snapshot:

Billings, Montana

The Billings real estate market is experiencing steady growth. As of December 2024, the median home price reached $380,000, reflecting a 2.4% increase over the past year. Homes are typically on the market for about 44 days before going under contract.

• Median Home Price: $380,000

• Year-over-Year Price Growth: 2.4%

• Average Days on Market: 44 days

Deal Of The Day:

2 House Property in Downtown Billings

• Price: $750,000

• Units: 2 (1 4-bed, 3-bath, 1 2-bed, 1-bath)

• Monthly Rental Income: $4,500

• Cap Rate: Approximately 9.8%

This 2 house property offers a compelling investment opportunity with a strong cap rate. The main house rents for $2300 while the secondary house rents for $1750, totaling $4,050 in monthly income. Located near local amenities and public transportation, it appeals to a broad tenant base.

Deal Rating: 7.3/10

This property does show great potential for appreciation over the next few years but not only does it not cashflow but it is negative pretty sizeable amount unless a down payment of 50% is made, in which case this deal would be great. The location is perfect with it being in proximity to downtown. This property has short term rental potential.

Investment Strategy:

Seller Financing

In seller financing, the property's seller acts as the lender, allowing the buyer to make payments directly to them over time. This can be advantageous in tight credit markets or for buyers lacking traditional financing. For example, purchasing a property for $400,000 with a 10% down payment and negotiating a 5% interest rate over 20 years can result in favorable terms for both parties.

Current Interest Rates:

Billings, Montana

• 30-Year Fixed Residential: 6.9%

• 15-Year Fixed Residential: 6.1%

• Commercial Rates: Starting at 6.7%

Residential mortgage rates in Billings are currently around 6.9% for a 30-year fixed loan. Commercial rates begin at 6.7%, which may influence investment decisions, especially for those considering multifamily or commercial properties.

Real Estate Tip:

The Rise of Co-Living Spaces in Mid-Sized Cities

Co-living spaces, where individuals rent private rooms within a shared community, are gaining traction in mid-sized cities like Billings. These setups offer affordable living options and foster community among residents. For investors, co-living can lead to higher per-square-foot rental income. Implementing co-living arrangements in a property with multiple bedrooms can maximize rental yields. However, it's essential to consider local regulations and market demand before transitioning a property to this model.

Economic Conditions

Billings boasts a low unemployment rate of 3.2%, driven by sectors like healthcare, education, and energy. The city's population has grown by 5% over the past decade, increasing housing demand. However, with inflation rates at 4%, construction costs have risen, potentially impacting new developments.

Market Rating: 7.8/10

This market would not be a good choice for beginner investors, yes the entry cost isn’t too high but the ability to find a cash flowing property in this market might be challenging at a 30% down payment. With that said this market shows great long term potential and would be great for investors who have the capital to put down 50% or 60%.

Key Takeaways:

• Billings Market Update: Median home price is $380,000, with a 2.4% annual increase.

• Deal of the Day: 2 house property priced at $750,000, yielding a 9.8% cap rate.

• Tip: Familiarize yourself with local zoning laws to ensure property use compliance.

• Investment Strategy: Consider seller financing to facilitate purchases without traditional loans.

• Interest Rates: Residential mortgages at 6.9%; commercial loans starting at 6.7%.

• Economic Impact: Low unemployment and population growth are driving housing demand in Billings.

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.

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Disclaimer: This newsletter is for informational and educational purposes only and reflects the opinions of its editors and contributors. The content provided, including but not limited to real estate tips, stock market insights, business marketing strategies, and startup advice, is shared for general guidance and does not constitute financial, investment, real estate, legal, or business advice. We do not guarantee the accuracy, completeness, or reliability of any information provided. Past performance is not indicative of future results. All investment, real estate, and business decisions involve inherent risks, and readers are encouraged to perform their own due diligence and consult with qualified professionals before taking any action. This newsletter does not establish a fiduciary, advisory, or professional relationship between the publishers and readers.