841 NM 170

La Plata, NM 87401

$120,000B-

3 bd · 2.0 ba · 1,120 sqft · Built 1990 · Other · Active · 3 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,515/mo
• Mortgage (P&I): −$629
• Tax + insurance: −$75
• HOA: −$0
• Vac / Maint / Mgmt: −$318
• Net cashflow: $493/mo
• Annual: $5,914/yr
• Cap rate: 11.22%
• Cash-on-cash: 17.60%
• DSCR: 1.78
• 1% rule: 1.26%
• Cash to close: $33,600

Investor read

• This is a 3-bed/2.0-bath other listed at $120k.
• At list price, monthly cash flow is $493 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $120k).
• Only 3 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $830 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 55/100 on livability (#219 in NM) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, crime B; Watch: amenities F, commute F, employment D-.
• Farmington Municipal Schools (urban): math 23% / reading 43% proficiency, ranked #23 of 95 in NM (top 24%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Ladera Del Norte Elementary (543 students, 40% FRL); Tibbetts Middle School (683 students, 100% FRL); Farmington High (math 50% / reading 90%, grade B+, #18 of 110 statewide, top 17%, 1,824 students, 49% FRL) — zoned schools average 63% FRL vs 48% district-wide (15 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Zoned-school proficiency averages 70% at this address vs 33% district-wide (+37 pts) — the actual schools serving this property are materially stronger than the Farmington Municipal Schools average implies; a family-tenant draw the district grade alone would hide.
• Market conditions: Rents rising fast (+5.1%/yr); 238 active listings in the ZIP; 78 units permitted in San Juan County in 2024 (8 in 5+ unit buildings).
• San Juan County population projected at -51% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 5.1% rent growth), your $34k cash investment doubles in ~7 years — after that, you're playing with house money.

Questions for listing agent

• 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?
• 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.