131 Kreuzer Dr

Ruidoso, NM 88312

$187,000D

3 bd · 2.0 ba · 1,000 sqft · Built 2011 · Other · Active · 118 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,735/mo
• Mortgage (P&I): −$981
• Tax + insurance: −$437
• HOA: −$0
• Vac / Maint / Mgmt: −$364
• Net cashflow: $-47/mo
• Annual: $-563/yr
• Cap rate: 6.80%
• Cash-on-cash: 1.79%
• DSCR: 1.08
• 1% rule: 0.93%
• Cash to close: $52,360

Investor read

• This is a 3-bed/2.0-bath other listed at $187k.
• At list price, monthly cash flow is $-47 ($-563/yr) — negative.
• To cash-flow at today's rent, offer at most $180k (3.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $173k (7.2% below list).
• It's been on market 118 days — a 9% lower offer ($170k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $170k (9.0% 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 $6k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#40 in NM) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A-; Watch: schools F, crime F, amenities F.
• Ruidoso Municipal Schools (town): math 16% / reading 59% proficiency, ranked #14 of 29 in NM (top 48%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: flood insurance adds $125/mo.
• Market conditions: 430 active listings in the ZIP; 92 units permitted in Lincoln County in 2024 (0 in 5+ unit buildings).
• Lincoln County population projected at -35% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts since 5y ago; this cycle's ask is 21% above the opening price — seller raised mid-cycle; expect resistance to lowballs.
• Climate carrying-cost: in FEMA flood zone A (mandatory federal flood insurance); severe wildfire risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 118 days. Have you received any prior offers? Is the seller open to a 9% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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?