703 & 703.5 W Lea St · Carlsbad, NM 88220

$110,000

1 bd · 1.0 ba · 558 sqft · SingleFamily · 174 Days on market

8,850 sqft lot

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Why this score? — see what drove the C 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 +24.5/30.0
• DSCR +7.9/10.0
• ARV discount +7.5/15.0
• 1% rule +5.1/10.0
• Schools +5.0/10.0
• Livability +3.5/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Welcome to 703 & 703.5 W Lea St. This investment opportunity offers tremendous potential. Conveniently situated in a central location, it is ideal for experienced DIY enthusiasts or investors seeking their next project. Do not miss this chance to breathe new life into a property with immense potential. The property boasts a spacious lot, offering tremendous possibilities. Seize the opportunity to make it your own.

Key facts

• Central location
• Spacious lot
• 8,850 sq ft lot

Tags

• CENTRAL LOCATION
• SPACIOUS LOT
• INVESTMENT OPPORTUNITY

What this means for you Summary

Snapshot

• This is a 1-bed/1.0-bath single-family listed at $110k.

Deal economics

• At list price, monthly cash flow is $103 ($1k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $110k).
• Recommended offer: $97k (12.0% below list) — sets the bar for market timing.

Location & tenants

• Location reads 70/100 on livability (#20 in NM) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+, employment A; Watch: commute C-, health & safety C-, schools D.
• Market conditions: 363 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).
• This rent is only 17% of the median local income ($78k/yr) — well below the 30% rent-burden line; pricing power to push rent on renewal without tenant pushback.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $761 of loan paydown is wiped out by about $3k 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.

Negotiation context

• It's been on market 174 days — a 12% lower offer ($97k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: flood insurance adds $122/mo.
• Climate carrying-cost: in FEMA flood zone AO (mandatory federal flood insurance); severe wildfire risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $96,800 (12.0% below list)

Questions for the listing agent

1. It's been on market 174 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
3. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
6. 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?
7. 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.
8. 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.
9. 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: 1.01% ✓
• Cap rate: 8.76%
• Cash-on-cash: 8.80%
• DSCR: 1.39
• GRM: 8.2

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: -10.0%
• Equity multiple: 0.64×
• Total profit: $-11,205
• Equity at exit: $16,401

10-year hold

• IRR: -0.5%
• Equity multiple: 0.96×
• Total profit: $-1,156
• Equity at exit: $9,511

Cash invested: $30,800 (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 88220

• Active inventory: 363
• Price-to-rent: 8.2×

Monthly cashflow live

• Estimated rent: $1,116 medium
• Mortgage (P&I): −$577
• Tax from tax record: −$33 /mo · $400/yr
• Insurance: −$46
• Flood insurance flood zone: −$122 /mo · $1,468/yr
• HOA: −$0
• Vacancy / Maint / Mgmt: −$234
• Net cashflow: $103

Break-even live

Break-even rent $985

Max offer price $110,000

Occupancy floor 86%

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: $27,500
• Closing costs: $3,300
• Reserves months: —
• Total cash needed: —

Rent comps 2 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
1308 W Church St Unit A Carlsbad, NM	1.0	1.0	750	$975	$1.30	43d	1	1.14mi
606 N 6th St Unit 5 Carlsbad, NM	—	1.0	484	$900	$1.86	43d	1	1.43mi

Listing history 19 events

1. 2026-06-18
   days on market $110,000 Active 174 DOM
2. 2026-06-17
   days on market $110,000 Active 173 DOM
3. 2026-06-16
   days on market $110,000 Active 172 DOM
4. 2026-06-15
   days on market $110,000 Active 171 DOM
5. 2026-06-14
   days on market $110,000 Active 169 DOM
6. 2026-06-13
   days on market $110,000 Active 168 DOM
7. 2026-06-10
   days on market $110,000 Active 166 DOM
8. 2026-06-09
   days on market $110,000 Active 165 DOM
9. 2026-06-08
   days on market $110,000 Active 164 DOM
10. 2026-06-07
    days on market $110,000 Active 163 DOM
11. 2026-06-05
    days on market $110,000 Active 160 DOM
12. 2026-06-03
    days on market $110,000 Active 159 DOM
13. 2026-06-02
    days on market $110,000 Active 158 DOM
14. 2026-06-01
    days on market $110,000 Active 157 DOM
15. 2026-05-31
    days on market $110,000 Active 156 DOM
16. 2026-05-30
    days on market $110,000 Active 155 DOM
17. 2025-12-24
    listed $110,000 Active 423-char remark

    Show marketing remark (423 chars)

    Welcome to 703 & 703.5 W Lea St. This investment opportunity offers tremendous potential. Conveniently situated in a central location, it is ideal for experienced DIY enthusiasts or investors seeking their next project. Do not miss this chance to breathe new life into a property with immense potential. The property boasts a spacious lot, offering tremendous possibilities. Seize the opportunity to make it your own.

18. 2019-06-03
    soldstatus
19. 2012-12-19
    soldstatus

ⓘ 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: $400 · $33/mo
• Projected year-2 tax: $880 · $73/mo
• Expected delta: +$480/yr (+$40/mo · 119.8%)

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

Climate risk First Street

• 🌊 Flood 4/10 Moderate FEMA zone AO · 22% chance over 30 yrs
• 🔥 Wildfire 8/10 Severe
• 🌡 Heat 6/10 Major 7 d/yr ≥102°F today · 20 d/yr by 30 yrs out
• 💨 Wind 2/10 Low
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $13,395
• − Mortgage interest: −$6,162
• − Property taxes: −$400
• − Insurance: −$2,018
• − Repairs & maintenance: −$1,072
• − Management: −$1,072
• − Depreciation: −$3,200
• Taxable loss: −$528
• Est. tax savings @ 24.0%: +$127
• After-tax cash flow: $1,369/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)

No district data.

Livability — Carlsbad

• Score: 70/100
• State rank: #20
• US rank: #7925

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Carlsbad, NM
• County: Eddy County · 58,370 people
• City population: 39,828
• Metro: Carlsbad-Artesia, NM
• Population (ZIP): 39,828
• Household income: $78,162
• Rent vs Own: 26.0% rent · 74.0% own
• Severe rent burden: 661.0

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: Diverse neighborhood (Simpson 0.56)
• Race & ethnicity: Hispanic / Latino 48% White 46% Two or more races 22% Black 2% Native American 1%
• Hispanic origin (detail): Mexican 41%
• Common ancestry: Lithuanian 1% Slovak 1% Serbian 1%
• Foreign-born: 6% · Canada
• Languages at home: 76% 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: ▼ -283.72%
• Current HPI: 114.115
• Rent YoY: —
• Metro: Carlsbad-Artesia, NM
• State GDP YoY: —
• F500 in state: 0

Price history

3 events — show timeline

• 2025-12-24 Listed $110,000 NMMLS
• 2019-06-03 Sold (Public Records) — Public Records
• 2012-12-19 Sold (Public Records) — Public Records

Property tax history

+2.6%/yr

Latest (2025): $400 · +1.8% YoY. Source: county tax records.