153 S 1st Street St

Santa Rosa, NM 88435

$120,000C

1 bd · 1.0 ba · 900 sqft · Built 1970 · SingleFamily · Pending · 25 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,169/mo
• Mortgage (P&I): −$629
• Tax + insurance: −$200
• HOA: −$0
• Vac / Maint / Mgmt: −$245
• Net cashflow: $94/mo
• Annual: $1,131/yr
• Cap rate: 7.24%
• Cash-on-cash: 3.37%
• DSCR: 1.15
• 1% rule: 0.97%
• Cash to close: $33,600

Investor read

• This is a 1-bed/1.0-bath single-family listed at $120k. Condition is rated fair.
• At list price, monthly cash flow is $94 ($1k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $117k (2.6% below list).
• It's been on market 25 days — a 2% lower offer ($118k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $117k (2.6% below list) — sets the bar for 1% rule.
• In year one you build about $4k of equity ($830 loan paydown + $4k appreciation (3.0% local appreciation)).
• Location reads 66/100 on livability (#44 in NM) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A-; Watch: crime C-, schools F, amenities F.
• Santa Rosa Consolidated Schools (town): math 25% / reading 25% proficiency, ranked #28 of 29 in NM (top 97%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 91% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 16 active listings in the ZIP.
• Guadalupe County population projected at -29% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $34k cash investment doubles in ~6 years — after that, you're playing with house money.
• By year 8, paydown + projected appreciation supports a ~$33k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1970 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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?
• 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.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.

Repairs flagged (vision-AI assessment)

• Moderate: Kitchen cabinets — Old and outdated, need replacement.
• Moderate: Appliances — Outdated and may need replacement.
• Moderate: Countertops — Worn and may need replacement or resurfacing.
• Moderate: Landscaping — Overgrown and needs trimming and landscaping improvements.
• Moderate: Exterior paint — Some discoloration and wear, may need repainting.
• Moderate: Windows — Standard windows, may need replacement or caulking for energy efficiency.