2702 S 540th LOOP #43

Logan, NM 88426

$20,000D+

3 bd · 2.0 ba · 1,280 sqft · Built 1977 · Other · Active · 1 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,286/mo
• Mortgage (P&I): −$105
• Tax + insurance: −$33
• HOA: −$0
• Vac / Maint / Mgmt: −$270
• Net cashflow: $878/mo
• Annual: $10,537/yr
• Cap rate: 58.98%
• Cash-on-cash: 188.17%
• DSCR: 9.37
• 1% rule: 6.43%
• Cash to close: $5,600

Investor read

• This is a 3-bed/2.0-bath other listed at $20k.
• At list price, monthly cash flow is $878 ($11k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $20k).
• Only 1 days on market — expect competitive offers; lowballing is unlikely to land.
• In year one you build about $627 of equity ($138 loan paydown + $489 appreciation (2.5% local appreciation)).
• Location reads 59/100 on livability (#134 in NM) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, health & safety A+, crime A; Watch: amenities F, commute F, employment F.
• Logan Municipal Schools (rural): math 24% / reading 47% proficiency, ranked #20 of 95 in NM (top 21%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Logan Elementary (math 34% / reading 84%, grade B-, #13 of 68 statewide, top 18%, 88 students, 46% FRL); Logan Middle (60 students, 52% FRL); Logan High (math 24% / reading 75%, grade D+, #36 of 110 statewide, top 45%, 84 students, 43% FRL) — zoned schools at 47% FRL track the district average.
• Zoned-school proficiency averages 55% at this address vs 36% district-wide (+19 pts) — the actual schools serving this property are materially stronger than the Logan Municipal Schools average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: 29 active listings in the ZIP.
• Quay County population projected at -35% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (2.5% appreciation + 3.0% rent growth), your $6k cash investment doubles in ~1 year — after that, you're playing with house money.

Questions for listing agent

• Built in 1977 — 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.
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• 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.