Most Missoula flips are not cosmetic. They are 80 to 110 year old houses with foundations, wiring and heat that need real work, in a town where the outdoor building season is short and good trades are booked months out.
In short: LendingStreet funds fix and flip loans on 1-8 unit investor properties in Missoula from $150,000 to $5M+, covering up to 90% of cost and up to 100% of the rehab budget on some programs. Loans are short-term and interest-only, and can close in as little as 10 days. You exit by selling or by refinancing into a DSCR rental loan if the numbers favor holding.
The housing that comes up as a flip candidate in Missoula is often on the Northside, the Westside, Franklin to the Fort or around the university. Many of these homes were built before 1940 and have been patched over decades. Common scope items include:
Roofing, siding, foundation and exterior paint go best between late spring and early fall. If you buy in October, plan for interior work through winter and exterior work once the ground thaws, and budget heat for a vacant house so pipes do not freeze.
That makes the loan term matter. A seven to nine month plan is common for a full rehab here, and an extension is better arranged up front than requested at the end.
Fix and flip loans are sized on total cost, meaning purchase plus rehab, and capped by the after-repair value. Rehab funds are held back and released in draws after the work is inspected.
| Piece | How it works |
|---|---|
| Purchase | Up to 90% of the price on some programs |
| Rehab | Up to 100% of the budget on some programs, paid in draws |
| Term | Short-term, interest-only |
| Closing | As little as 10 days with a complete file |
| Exit | Sale, or refinance into a DSCR rental loan |
This example is illustrative and not a quote. An investor buys a 1920s Northside bungalow for $340,000 with a $95,000 rehab budget for wiring, a new furnace, a kitchen, a bath and exterior paint. The after-repair value is estimated at $525,000.
Total cost is $435,000. With 90% of the purchase financed ($306,000) and 100% of the rehab ($95,000), the loan reaches $401,000, about 76% of the after-repair value. The investor brings about $34,000 plus closing costs. Estimated interest-only payments are about $3,175 a month once the rehab is fully drawn, or about $22,222 over a 7-month hold if every dollar were drawn on day one. Since draws come in stages, actual interest is usually lower.
| Item | Amount |
|---|---|
| Purchase price | $340,000 |
| Rehab budget | $95,000 |
| Total cost | $435,000 |
| Loan (90% of purchase, 100% of rehab) | $401,000 |
| Investor cash before closing costs | $34,000 |
| Estimated monthly interest, fully drawn | $3,175 |
| After-repair value | $525,000 |
Montana does not record sale prices, so the after-repair value depends on MLS comparables and the appraiser's judgment. A fully redone bungalow on the Northside may have only a handful of truly comparable sales in the past year.
Pull your own comparables before you make an offer, and keep your plan close to what finished homes nearby have sold for rather than the best sale you can find.
Electrical, plumbing, mechanical and structural work generally needs permits through the city's development services office, and properties in historic districts can have added review. Outside city limits, Missoula County handles permitting.
Factor permit time into your schedule. Draw inspections go more smoothly when permits are posted and the work matches the budget you submitted.
If you plan to add a bedroom in a basement, confirm egress and ceiling height rules before you list it as a selling feature. Buyers and appraisers in Missoula look closely at whether a finished basement was done with permits.
Missoula's rental demand gives flippers a second exit. If a sale is slow or the finished home would rent well, you can refinance into a DSCR loan based on the rent. That works best when the rent can cover the new payment at the 1.0x standard minimum, so check that before you choose finishes.
Our Missoula DSCR page walks through how rents are counted near the university.
Buyers of finished homes in Missoula pay for location and condition, and the spread between a dated house and a redone one is widest in older, walkable parts of town. A tired bungalow near the Northside or the Slant Streets can gain a lot of value from new systems and a clean kitchen, because finished homes there sell to buyers who do not want a project.
Newer subdivisions in Miller Creek or Lolo leave less room. A 2005 house with worn carpet and builder-grade finishes has a smaller gap between purchase and resale, so a flip there depends on buying well below market. Duplexes near campus can work either way: sold to another investor, or kept and refinanced.
Wherever you buy, include selling costs, carrying costs through a slow winter listing and a contingency of at least 10% of the rehab budget. Older Missoula houses tend to hide problems behind plaster.
Send the address, price, scope of work with a line-item budget, your contractor and your experience. Newer investors can qualify on some programs, often with a lower cost percentage or an experienced contractor on the job. Experienced flippers with a track record in the valley can usually get the higher leverage and faster draws.
Call (877) 298-1001 or use the form below. Our investor loans are business-purpose loans on non-owner-occupied property, and we lend on single-family homes and 2-8 unit buildings across Missoula County.
Up to 90% of the purchase and up to 100% of the rehab budget on some programs, within limits based on after-repair value.
In as little as 10 days when the title, insurance and scope of work are ready.
Yes, for interior work. Plan exterior and foundation work for warmer months and budget heat for the vacant house.
A licensed, insured contractor helps, especially for newer investors. Experienced investors who manage their own trades may qualify on some programs.
Through draws after inspections confirm the work. Most investors request draws by stage, such as rough-in, drywall and finish.
You can refinance into a DSCR loan that qualifies on the rent, as long as the rent covers the new payment.
Yes. We fund 1-8 unit rehabs in Lolo, Frenchtown, East Missoula, Bonner and elsewhere in the county, with a $150,000 minimum loan.
Not if you plan for it. Put testing and any mitigation in your budget as line items, and have results ready when the inspector visits for that draw.
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