The best way to prepare for retirement or even make it your profession is to invest in real estate for profit. You should be aware of these hot markets that are anticipated to continue thriving if you have Montana in your sights but are unsure of where to look. Whether you are an investor who is looking to buy and hold real estate in Montana, fix and flip houses for profit or build a rental portfolio to ensure a steady stream of passive income, here are our top picks of the best places to buy a property in Montana.
Top Best places to buy a property in Montana Real Estate Investment Markets
You’re not the only one who thinks Montana is the ideal place to invest in real estate. The region offers a burgeoning real estate market, a booming economy, and a growth in jobs in the technology, agricultural, and healthcare sectors.
Yes, people search for homes in Big Sky Country for both vacation and permanent habitation. People move to Montana from all over the world because of the state’s breathtaking mountain ranges and expansive outdoor beauty.
All the cities in our list have had significant annual increases in property values, with median listing prices that are still within reach for most people and high average rents that can help finance the purchase. For every location, there are over 40 leads per property, and the average time a property spends on the market is under two weeks.
Hard Money lenders in Montana can provide you with the access to finance you require if you are a real estate investor looking to purchase a non owner occupied property in the state of Montana.
Bozeman
This wildly popular ski resort is a terrific spot to make money investing in real estate. The fact that market values reflect the demand for real estate should not come as a surprise. According to recent data, Bozeman’s median home value is $436,800, although most are listed for $450,000.
The median values have climbed by 11% since last year, and before 2020, they are predicted to rise by a further 6.8%. Given how quickly the market is growing, purchasing now can yield a significant return.
Professionals can find well-paying positions in Bozeman at Montana State University, which supports nearly 3,000 local jobs. In the city, which is being used as a hub by big internet companies, there is also a technical boom going on. Good news for individuals planning to invest in real estate in the area is the region’s solid labor market and unemployment rate of around 3%.
Whitefish
A resort community called Whitefish can be found on the outskirts of Glacier Park in the northwest part of the Rocky Mountains. Along with millions of acres of forest, mountains, and lakes, it is home to the Whitefish Mountain resort, which is situated on Big Mountain. Fun fact: For the past 16 years, Whitefish has served as the host city for the World Indoor Golf Championship. With an 8.5% population growth year over year, it also has the highest number of new residents of any city on our list.
Home values have climbed by 5.6% while employment growth has increased by 1.9%. The median listing price is the highest of the group at $369k, but the average rent is high at $1800. With only two weeks on the market, it already has the most leads—56. When it comes to investing in rental properties, Whitefish hits the ball out of the park.
Helena
As property values continue to rise, the state’s capital is a secure location for real estate investments. At $255,700, the current median average is 10% higher than it was in 2017. Within the following year, the market is predicted to rise by an additional 5.7%.
For its 31,429 residents, Helena’s stable work market provides a variety of career options. Public administration, healthcare, and educational services are the three largest sectors. Top talent will continue to flock to this area in pursuit of real estate as a result of these markets.
Helena’s economy is improving and turning into a seller’s market. Selling real estate should continue to be competitive among home buyers given the rising demand and low inventory.
Billings
With slightly over 100,000 population, Billings is the biggest city in Montana and goes by the moniker “Magic City” due to the explosive growth it underwent as a railroad town in the second half of the 19th century.
The Beartooth Highway in Red Lodge and the northeast entrance to Yellowstone National Park are two of the state’s most popular tourist destinations and are both accessible from Billings. Year over year, home values have increased by 6.5%. Just under $250k is the typical listing price, and the average monthly rent is a healthy $1100. With fewer than 12 days on the market, landlords are receiving close to 50 leads per home. When it comes to investing in rental properties, Billings is penciling because it isn’t magic, it’s math.
Great Falls
Great Falls, which has a population of roughly 59,000, combines the convenience of big city services with a small town feel in the center. This is a fantastic spot to invest in real estate because of the low cost of living.
The median property value in the area is $204,100, or almost $171 per square foot, despite the fact that the median household income is below the national average at $42,237. The average rent in this popular rental sector is $1,200 per month. 70% of city residents are homeowners, leaving a sizable section of the populace looking for rental housing.
The lack of interest from wealthy property purchasers looking for properties is one issue that is now present. Profit margins could be smaller since neighboring cities provide more favorable conditions. However, Great Falls is a fantastic choice for people looking for a reasonably priced site to start a business venture.
Missoula
Missoula is a great destination to shop because of its inviting blend of premium culture and a relaxed ambiance. Investors in real estate should be aware that the current median home value of $304,200 has increased an amazing 11.4% over the previous year. By 2023, according to a research, it is anticipated to rise by a further 6.6%.
Since Missoula is the location of Montana University, there is a steady influx of students looking for homes. Owners will receive an average monthly return of $1,300 from their rental investments. While the median property value is $304,200, listings indicate an average price of $350,000.
Selling pricey houses to local buyers might be a drawback for real estate investors. With an average annual income of $40,730, most people cannot afford some price tags.
However, the fact that housing values and the population are rising is largely due to out-of-state home buyers. More than 60,000 acres of wilderness surround Missoula, making it a popular vacation spot or retirement getaway.
Financing options to buy a property in Montana
As a real estate investor, the type of loan you select to finance your property may have an effect on your bottom line because it may alter your interest rates, down payment, and loan term. Here are a few different strategies for funding real estate investments.
Traditional loan
This traditional funding is typically provided by banks or credit unions. They require average to good credit and have consistent interest rates and flexible down payment requirements. To make sure you have enough money to repay the loan, lenders will look at your assets, tax returns, cash reserves, debt, and other eligibility criteria. After evaluating your financial situation, the lender will either accept you or refuse you.
Hard money loan.
Hard money loans are more accessible since they have less eligibility requirements than conventional loans. Instead of using a person’s own income or credit history to guarantee the mortgage, the asset’s potential future profits are utilized instead. Hard money lenders will make a sizable upfront cash contribution to meet the projected market value of the property. These loans often have a short term.
Conclusion
Although life in Montana varies from county to county, you now know what each one is known for and what it has to offer. Selecting the ideal investment partner should be high on your priority list when you consider purchasing a home in Montana County.
Getting the necessary funding for the project might be a game-changer given how volatile the Montana market is. Hard money loans have two advantages: a speedy loan processing time and a flexible approval process.
Hard money loans may be your best friend once you’ve narrowed down your list of potential properties, whether you want to buy it, fix it up, or sell it for a profit.
When you shake hands with 14th Street Capital, you become a preferred hard money lender in the Montana real estate market, joining seasoned local real estate experts. We provide you with the integrity and expertise you need to flourish in the Montana real estate market as an experienced hard money lender.