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Owner Financing - Pray, MT - $300k - STR/Com. 1392 E River Rd

5 Unit Apartment Building $2,600,000 ($520,000/Unit) 4% Cap Rate Pray, MT 59065

Investment Highlights

  • Historic building near Yellowstone's only year-round entrance, close to Bozeman and I-90, US Post Office lease brings steady foot-traffic
  • Management and construction team in place which knows the area well
  • Possibility to double income very quickly by investing in approved septic plans

Executive Summary

This property is the town of Pray, MT, located in Montana's legendary Paradise Valley, just a few minutes north of Yellowstone's only year-round entrance. With existing cash flow of $300k gross, this property is ready to explode its potential with the next buyer. Management and construction team is ready to go. US Post Office lease on property brings in steady local foot traffic.
Buyer can elect to complete plans approved by County Sanitarian, and land can be ready for 8+ cabins before summer 2025. Truly a turnkey operation. Contractors have aggregate ready to go, and cabins just need a signature to start construction.
Existing business brings in $300k+ annually, projections on a complete project are at $650k+ 1st year, and $1M+ after 2 year stabilization period. PnL's, leases, approved septic plans, drawings, and additional info available to qualified buyers, including a comprehensive plan to bring the property to its full potential and highest and best use.
Business and construction managers have many years of experience in the State of Montana with active projects in the Valley, and thousands of tons of aggregates and materials located a few miles away, with which to complete this project before next summer season arrives. Big Sky Equity llc is a real estate investment company, and has studied the local Montana economy since 2009, while helping investors find cash-flowing niches in a highly competetive market.
Market conditions, affecting this business include tourism and real estate, both of which are steadily growing in this region. Paradise Valley is one of the most sought after trophy property locations in the Western US, as evidenced by a quick glimpse at the local MLS. There are currently a very limited amount of things to do in this Valley, and more of the local economy's share is becoming year-round residents, vs transient tourism based services, so now is the time to get in on a solid Montana business with huge growth potential. This property can be managed year-round by switching up usage to LTR, as demand is extremely high in the Valley for winter housing.
Sage Lodge is 7 minutes away. Chico Hot Springs is 5 minutes away. Emigrant is 6 minutes away. Bozeman International Airport is 1 hour. Livingston is 30 minutes away. Yellowstone National Park is 30 minutes away. All around you: 22 million acres of the Greatery Yellowstone Ecosystem, stretching from Bozeman in the North to well past Jackson Hole, WY in the South.
Possible expansion towards highest and best use include: 1. Cafe/food truck rental space on County Rd., 2. Build to Suit/Invest in General Store so commercial tenant can expand their business (% lease in place). 3. Include a small venue space on N side of Store for hourly/daily rentals 4. Build to Suit 8+ cabins in the back of the property with existing approved plans. 5. 4-5 RV pads on NE Corner of property. 6. Additional 6th unit of STR above the General Store. 7. Branding and Marketing the Store to draw attention to tourists booking on the internet
Possible Owner financing with 50% down
Check out PrayMontana.Homes for more info and aerial footage of the property and surrounding Beartooth-Absaroka Wilderness! Call Mike @ 406-414-7725

Financial Summary (Actual - 2023)

Annual Annual Per SF
Gross Rental Income $303,000 $60.60
Other Income - -
Vacancy Loss - -
Effective Gross Income $303,000 $60.60
Taxes - -
Operating Expenses - -
Total Expenses $200,000 $40.00
Net Operating Income $103,000 $20.60

Financial Summary (Actual - 2023)

Gross Rental Income
Annual $303,000
Annual Per SF $60.60
Other Income
Annual -
Annual Per SF -
Vacancy Loss
Annual -
Annual Per SF -
Effective Gross Income
Annual $303,000
Annual Per SF $60.60
Taxes
Annual -
Annual Per SF -
Operating Expenses
Annual -
Annual Per SF -
Total Expenses
Annual $200,000
Annual Per SF $40.00
Net Operating Income
Annual $103,000
Annual Per SF $20.60

Property Facts

Price $2,600,000
Price Per Unit $520,000
Sale Type Investment
Cap Rate 4%
Sale Conditions
Build to Suit
  • Business Value Included
  • Redevelopment Project
No. Units 5
Property Type Multifamily
Property Subtype
Apartment
  • General Retail Storefront Retail/Residential
  • Office Office Residential
  • Multifamily Dormitory
Apartment Style Single Family Home
Building Class B
Lot Size 5.00 AC
Building Size 5,000 SF
No. Stories 2
Year Built 2020
Parking Ratio 1.6/1,000 SF

Amenities

  • Activity License

Unit Amenities

  • Dishwasher
  • Heating
  • Kitchen
  • Vaulted Ceiling
  • High Speed Internet Access
  • Refrigerator
  • Tub/Shower
  • Yard
  • Deck
  • Dining Room
  • Double Pane Windows
  • Window Coverings

Site Amenities

  • Fenced Lot
  • Property Manager on Site
  • Furnished Units Available
  • Guest Apartment
  • On-Site Retail
  • Vintage Building
  • Storage Space
  • Community-Wide WiFi

About 1392 E River Rd , Pray, MT 59065

3 Amish built log cabins, built in 2019-2020 by Mill Canyon Log Homes in Salmon Idaho. On a permanenet foundation with frost wall and crawlspace. All new, modern construction. Excellent rental income. Duplex with a 2 bd/1 ba, and a 1 bd/1ba, 2500 sqft General Store on % lease, US Post Office lease

Unit Mix Information

Description No. Units Avg. Rent/Mo SF
2+1 4 - 800 - 1,200
1+1 2 - 1,200 - 2,500
Studios 1 - 500

zoning

Zoning Code none
none
  • Listing ID: 33447796

  • Date on Market: 10/8/2024

  • Last Updated:

  • Address: 1392 E River Rd, Pray, MT 59065

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