7 Oak Dr

Roswell, NM 88203

$177,000D+

4 bd · 1.0 ba · 1,300 sqft · Built 1953 · SingleFamily · Pending · 190 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,574/mo
• Mortgage (P&I): −$928
• Tax + insurance: −$163
• HOA: −$0
• Vac / Maint / Mgmt: −$331
• Net cashflow: $152/mo
• Annual: $1,830/yr
• Cap rate: 7.33%
• Cash-on-cash: 3.69%
• DSCR: 1.16
• 1% rule: 0.89%
• Cash to close: $49,560

Investor read

• This is a 4-bed/1.0-bath single-family listed at $177k.
• At list price, monthly cash flow is $152 ($2k/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 $157k (11.1% below list).
• It's been on market 190 days — a 12% lower offer ($156k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $156k (12.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#8 in NM, #4,339 nationally) — a middle-class / working-renter tenant base. Strengths: commute A+, cost of living A+, housing A+; Watch: employment D, crime F, amenities F.
• Roswell Independent Schools (town): math 11% / reading 52% proficiency, ranked #16 of 29 in NM (top 55%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases; 75% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: El Capitan Elementary (math 8% / reading 62%, grade F, #45 of 68 statewide, top 66%, 396 students, 100% FRL); Sierra Middle (math 8% / reading 44%, grade F, #16 of 27 statewide, top 58%, 627 students, 100% FRL); Goddard High (math 32% / reading 52%, grade F, #59 of 110 statewide, top 53%, 1,155 students, 0% FRL).
• Watch-outs: built in 1953 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 181 active listings in the ZIP; 1 comparable units currently listed for rent nearby; lower-income renter base — watch delinquency; 88 units permitted in Chaves County in 2024 (0 in 5+ unit buildings).
• 3 sale attempts since 5y ago; this cycle's ask is 11700% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Climate carrying-cost: major wildfire risk; extreme-heat days projected 7→20/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• This rent runs 45% of the median local income ($42k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

Questions for listing agent

• It's been on market 190 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• Built in 1953 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• 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?
• 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.