308 Booster Sta

Clayton, NM 88415

$59,000B-

4 bd · 2.0 ba · 2,949 sqft · Built 1971 · Other · Active · 13 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,356/mo
• Mortgage (P&I): −$309
• Tax + insurance: −$121
• HOA: −$0
• Vac / Maint / Mgmt: −$285
• Net cashflow: $641/mo
• Annual: $7,697/yr
• Cap rate: 19.34%
• Cash-on-cash: 46.59%
• DSCR: 3.07
• 1% rule: 2.30%
• Cash to close: $16,520

Investor read

• This is a 4-bed/2.0-bath other listed at $59k.
• At list price, monthly cash flow is $641 ($8k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($1k rent vs $59k).
• Only 13 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $408 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Location reads 64/100 on livability (#71 in NM) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A; Watch: crime D+, amenities F, commute F.
• Clayton Municipal Schools (rural): math 36% / reading 39% proficiency, ranked #14 of 95 in NM (top 15%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Alvis Elementary (157 students, 69% FRL); Clayton Junior High (56 students, 79% FRL); Clayton High (math 10% / reading 30%, grade F, #98 of 110 statewide, top 94%, 131 students, 66% FRL).
• Zoned-school proficiency averages 20% at this address vs 38% district-wide (-18 pts) — the specific schools serving this property underperform the Clayton Municipal Schools average; the district grade overstates school quality for this exact location.
• Market conditions: 23 active listings in the ZIP.
• Union County population projected at -22% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $17k cash investment doubles in ~3 years — after that, you're playing with house money.
• Climate carrying-cost: major wildfire risk — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Built in 1971 — 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.
• 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 D 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?
• 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.