1116 W Merchant Ave · Artesia, NM 88210

$295,000

4 bd · 2.5 ba · 1,862 sqft · SingleFamily · 5 Days on market

9,600 sqft lot

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Why this score? — see what drove the B- grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +29.7/30.0
• DSCR +10.0/10.0
• ARV discount +7.5/15.0
• 1% rule +7.4/10.0
• Schools +3.3/10.0
• Livability +3.2/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Beautifully renovated home with 4 bedrooms, 2.5 baths situated on large corner lot. Very inviting upon your first entry and warm throughout. You will love all that has been done with this home!

Key facts

• 9,600 sq ft lot
• 2 garage spots
• Listed 5 days

Property features AI

Exterior

• Parking: 2 total parking spaces; Attached carport; 2 covered spaces; 2-car garage
• Security: Smoke detector(s)
• Utilities: Public water; Sewer connected; Electricity connected; Natural gas available and connected; Cable available
• Home design: Single-family residence; One-story
• Construction: Frame, stucco, and wood siding construction
• Exterior features: Deck; Shed; Fenced backyard with wood fencing; Shingle roof

Interior

• Kitchen: Dishwasher; Microwave; Free-standing range; Pantry
• Flooring: Carpet; Vinyl
• Bathrooms: 2 full bathrooms; 1 half bathroom
• Heating & cooling: Forced air heating (natural gas); Central air conditioning; Electric cooling; Ceiling fans
• Interior features: Ceiling fans; Pantry; Walk-in closets; Double-pane windows with blinds; Smoke detectors
• Laundry & utility: Gas water heater; Water heater

What this means for you Summary

Snapshot

• This is a 4-bed/2.5-bath single-family listed at $295k.

Deal economics

• At list price, monthly cash flow is $1k ($13k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($4k rent vs $295k).

Location & tenants

• Location reads 63/100 on livability (#75 in NM) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment C-, health & safety C-, crime F.
• Artesia Public Schools (town): math 29% / reading 42% proficiency, ranked #17 of 95 in NM (top 18%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Yucca Elementary (333 students, 49% FRL).
• Market conditions: 166 active listings in the ZIP; 2 comparable units currently listed for rent nearby; solid renter incomes; 156 units permitted in Eddy County in 2024 (0 in 5+ unit buildings).
• At $3,656/mo this rent would consume 55% of the median local household income ($80k/yr) (locally 159% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $9k of value loss. Plan a longer hold.
• Eddy County population projected at +36% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $83k cash investment doubles in ~8 years — after that, you're playing with house money.

Negotiation context

• Only 5 days on market — expect competitive offers; lowballing is unlikely to land.
• 3 sale attempts since 8y 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.

Risks & watch-outs

• Climate carrying-cost: major wildfire risk; extreme-heat days projected 6→17/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $295,000

Questions for the listing agent

1. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
2. 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?
3. 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?
4. 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.
5. 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.
6. 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.

Investment metrics

• 1% rule: 1.24% ✓
• Cap rate: 10.67%
• Cash-on-cash: 15.64%
• DSCR: 1.70
• GRM: 6.7

CMA / ARV

No comps found within radius.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 6.4%
• Equity multiple: 1.25×
• Total profit: $20,663
• Equity at exit: $43,985

10-year hold

• IRR: 15.8%
• Equity multiple: 2.28×
• Total profit: $105,921
• Equity at exit: $25,506

Cash invested: $82,600 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 55 Moderately Landlord-Leaning
• State New Mexico: 55 Moderately Landlord-Leaning · D+3
• County: — inherits STATE
• City: — inherits STATE

3-day notice but with cure rights; relocation assistance in some cities.

Methodology + full state rankings →

ZIP-level market 88210

• Active inventory: 166
• Price-to-rent: 6.7×

Monthly cashflow live

• Estimated rent: $3,656 medium
• Mortgage (P&I): −$1,547
• Tax from tax record: −$142 /mo · $1,706/yr
• Insurance: −$123
• HOA: −$0
• Vacancy / Maint / Mgmt: −$768
• Net cashflow: $1,076

Break-even live

Break-even rent $2,294

Max offer price $295,000

Occupancy floor 66%

Sensitivity live

Price	-10% $1,243	-5% $1,160	+0% $1,076	+5% $993	+10% $909
Rent	-10% $787	-5% $932	+0% $1,076	+5% $1,221	+10% $1,365
Rate	-1.0pp $1,225	-0.5pp $1,151	base $1,076	+0.5pp $1,000	+1.0pp $922

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $73,750
• Closing costs: $8,850
• Reserves months: —
• Total cash needed: —

Rent comps 2 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
1402 W Briscoe Ave Artesia, NM	3.0	2.0	1564	$1,750	$1.12	45d	1	0.69mi
2106 W Bullock Ave Artesia, NM	3.0	2.0	1320	$1,800	$1.36	45d	1	1.03mi

Listing history 5 events

1. 2026-06-21
   days on market $295,000 Active 5 DOM
2. 2026-06-19
   days on market $295,000 Active 3 DOM
3. 2026-06-18
   days on market $295,000 Active 2 DOM
4. 2026-06-17
   remarks 699-char remark
5. 2026-06-17
   listed $295,000 Active 1 DOM

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Tax reassessment forecast NM · Resets to sale price

• Current annual tax: $1,706 · $142/mo
• Projected year-2 tax: $2,360 · $197/mo
• Expected delta: +$654/yr (+$54/mo · 38.3%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 2/10 Low FEMA zone X (unshaded) · 5% chance over 30 yrs
• 🔥 Wildfire 6/10 Major
• 🌡 Heat 6/10 Major 6 d/yr ≥101°F today · 17 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $43,875
• − Mortgage interest: −$16,525
• − Property taxes: −$1,706
• − Insurance: −$1,475
• − Repairs & maintenance: −$3,510
• − Management: −$3,510
• − Depreciation: −$8,582
• Taxable income: $8,567
• Est. tax owed @ 24.0%: −$2,056
• After-tax cash flow: $10,859/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Schools (NCES district)

• District: Artesia Public Schools
• NCES district ID: 3500120
• Math proficiency: 29% —
• Reading proficiency: 42% —
• Median HH income: $51,397
• Composite: 33.48/100
• National rank: #10522
• State rank: #17 of 95 in NM

Livability — Artesia

• Score: 63/100
• State rank: #75
• US rank: #15300

Category grades

Amenities F Commute F Cost of living A+ Crime F Employment C- Housing A+ Health & safety C- User ratings C-

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Artesia, NM
• County: Eddy County · 58,370 people
• City population: 18,542
• Metro: Carlsbad-Artesia, NM
• Population (ZIP): 18,542
• Household income: $79,632
• Rent vs Own: 28.7% rent · 71.3% own
• Severe rent burden: 159.0

Population outlook (Eddy County) Hauer SSP2

• Today (2025): 65,505 people
• By 2030: 69,797 · +6.6%
• By 2040: 79,191 · +20.9%
• By 2050: 89,199 · +36.2%
• By 2075: 115,829 · +76.8%
• By 2100: 129,336 · +97.4%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Majority Hispanic (55%)
• Race & ethnicity: Hispanic / Latino 55% White 40% Two or more races 19% Native American 3%
• Hispanic origin (detail): Mexican 50%
• Common ancestry: Italian 1% Romanian 1% Iranian 1%
• Foreign-born: 6% · Canada, Jamaica
• Languages at home: 74% English-only · Spanish 24%

Political lean MEDSL · Eddy

• 2024 margin: Solid R (+55.9) · D 21.4% · R 77.3% · Other 1.3%
• 2008→2024 swing: -30.2pp toward R · 2008: -25.6pp · 2024: -55.9pp
• All cycles: 2024: R+55.9 2020: R+51.8 2016: R+41.6 2012: R+33.5 2008: R+25.6

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -238.85%
• Current HPI: 115.6107
• Rent YoY: —
• Metro: Carlsbad-Artesia, NM
• State GDP YoY: —
• F500 in state: 0

Price history

+247.5% since first listed

7 events — show timeline

• 2026-06-16 Listed $295,000 NMMLS
• 2021-03-10 Sold (Public Records) — Public Records
• 2021-03-10 Sold (MLS) — NMMLS
• 2019-09-03 Listed $229,900 NMMLS
• 2018-08-29 Sold (MLS) — NMMLS
• 2018-02-28 Listed $84,900 NMMLS
• 2010-07-20 Sold (Public Records) — Public Records

Property tax history

+9.7%/yr

Latest (2025): $1,706 · -1.4% YoY. Source: county tax records.