393 E San Miguel St Unit 1-4

La Mesa, NM 88044

$475,000C-

28 bd · 16.0 ba · 4,460 sqft · Built — · MultiFamily · Active · 12 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,738/mo
• Mortgage (P&I): −$2,491
• Tax + insurance: −$792
• HOA: −$0
• Vac / Maint / Mgmt: −$995
• Net cashflow: $460/mo
• Annual: $5,525/yr
• Cap rate: 7.46%
• Cash-on-cash: 4.15%
• DSCR: 1.18
• 1% rule: 1.00%
• Cash to close: $133,000

Investor read

• This is a 4 × 7-bed/?-bath units multifamily listed at $475k. Condition is rated fair.
• At list price, monthly cash flow is $460 ($6k/yr) — positive. Per door: $115/mo.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $474k (0.3% below list).
• Only 12 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $474k (0.3% below list) — sets the bar for 1% rule.
• In year one you build about $14k of equity ($3k loan paydown + $11k appreciation (2.2% local appreciation)).
• Location reads 48/100 on livability (#310 in NM) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+; Watch: schools F, crime F, amenities F.
• Gadsden Independent Schools (rural): math 20% / reading 34% proficiency, ranked #21 of 29 in NM (top 72%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 95% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 24 active listings in the ZIP; 964 units permitted in Doña Ana County in 2024 (0 in 5+ unit buildings).
• 2 sale attempts since 4y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• At projected returns (2.2% appreciation + 3.0% rent growth), your $133k cash investment doubles in ~6 years — after that, you're playing with house money.
• By year 3, paydown + projected appreciation supports a ~$35k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: extreme-heat days projected 7→28/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.

Repairs flagged (vision-AI assessment)

• Moderate: kitchen cabinets — dated and in need of updating
• Moderate: bathroom cabinets — dated and in need of updating
• Moderate: kitchen appliances — dated and in need of updating
• Moderate: bathroom fixtures — dated and in need of updating