400 W Midwest St · Hobbs, NM 88240

$124,500

2 bd · 1.0 ba · 852 sqft · SingleFamily public records · 34 Days on market

Built 1950 7,000 sqft lot

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Why this score? — see what drove the D+ 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 +19.8/30.0
• ARV discount +7.5/15.0
• DSCR +6.3/10.0
• 1% rule +4.4/10.0
• Livability +3.3/5.0
• Rent growth +2.5/5.0
• Schools +2.5/10.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

This charming 2-bedroom, 1-bathroom home offers classic character and is situated on a large corner lot. The property features a small screened-in front porch and a large fenced-in yard, providing plenty of space for pets, gardening, outdoor gatherings or future improvements. Please note that the seller is offering the home in "as-is" condition and will not be making repairs. Don’t miss out on this opportunity to make this house your home.

Key facts

• Corner lot
• Fenced-in yard
• 7,000 sq ft lot

Tags

• CORNER LOT
• SCREENED-IN FRONT PORCH
• FENCED-IN YARD

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $124k.

Deal economics

• At list price, monthly cash flow is $26 ($310/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 $117k (5.6% below list).
• Recommended offer: $117k (5.6% below list) — sets the bar for 1% rule.

Location & tenants

• Location reads 66/100 on livability (#37 in NM) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: employment D+, schools F, crime F.
• Hobbs Municipal Schools (town): math 17% / reading 31% proficiency, ranked #45 of 95 in NM (top 47%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Market conditions: 231 active listings in the ZIP; 2 comparable units currently listed for rent nearby; 172 units permitted in Lea County in 2024 (0 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $861 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Lea County population projected at +50% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.

Negotiation context

• It's been on market 34 days — a 3% lower offer ($121k) is reasonable based on typical stale-listing flexibility.
• 3 sale attempts since 9y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.

Risks & watch-outs

• Watch-outs: flood insurance adds $122/mo; built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: in FEMA flood zone AO (mandatory federal flood insurance); severe wildfire risk; extreme-heat days projected 7→19/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $117,492 (5.6% below list)

Questions for the listing agent

1. It's been on market 34 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
2. Built in 1950 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
3. What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
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. 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?
8. 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.
9. 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.
10. 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: 0.94% ✗
• Cap rate: 7.72%
• Cash-on-cash: 5.10%
• DSCR: 1.23
• GRM: 8.8

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: -14.8%
• Equity multiple: 0.47×
• Total profit: $-18,483
• Equity at exit: $18,563

10-year hold

• IRR: -6.1%
• Equity multiple: 0.60×
• Total profit: $-13,796
• Equity at exit: $10,764

Cash invested: $34,860 (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 88240

• Active inventory: 231
• Price-to-rent: 8.8×

Monthly cashflow live

• Estimated rent: $1,175 medium
• Mortgage (P&I): −$653
• Tax from tax record: −$75 /mo · $903/yr
• Insurance: −$52
• Flood insurance flood zone: −$122 /mo · $1,468/yr
• HOA: −$0
• Vacancy / Maint / Mgmt: −$247
• Net cashflow: $26

Break-even live

Break-even rent $1,142

Max offer price $124,500

Occupancy floor 93%

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: $31,125
• Closing costs: $3,735
• Reserves months: —
• Total cash needed: —

Rent comps 2 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
1122 3 E Broadway St Unit B-103 Hobbs, NM	1.0	1.0	580	$900	$1.55	43d	1	1.19mi
1122 3 E Broadway St Unit B-302 Hobbs, NM	3.0	2.0	976	$1,200	$1.23	43d	1	1.19mi

Listing history 8 events

1. 2026-05-05
   price $124,500 459-char remark

   Show marketing remark (459 chars)

   This charming 2-bedroom, 1-bathroom home offers classic character and is situated on a large corner lot. The property features a small screened-in front porch and a large fenced-in yard, providing plenty of space for pets, gardening, outdoor gatherings or future improvements. Please note that the seller is offering the home in "as-is" condition and will not be making repairs. Don’t miss out on this opportunity to make this house your home.

2. 2026-04-20
   listed $127,000 Active 459-char remark

   Show marketing remark (459 chars)

   This charming 2-bedroom, 1-bathroom home offers classic character and is situated on a large corner lot. The property features a small screened-in front porch and a large fenced-in yard, providing plenty of space for pets, gardening, outdoor gatherings or future improvements. Please note that the seller is offering the home in "as-is" condition and will not be making repairs. Don’t miss out on this opportunity to make this house your home.

3. 2023-03-08
   soldstatus Closed 333-char remark

   Show marketing remark (333 chars)

   Very cute smaller home. Perfect for starter home or empty nesters. Many updates have been made by seller. Screened in front porch with large back yard all fenced. Front yard is also fenced in. This home sits on 2 lots & is on a corner. Must see to appreciate! Currently occupied so we will need 24 hour notice prior to showing

4. 2023-02-07
   status Pending 333-char remark

   Show marketing remark (333 chars)

   Very cute smaller home. Perfect for starter home or empty nesters. Many updates have been made by seller. Screened in front porch with large back yard all fenced. Front yard is also fenced in. This home sits on 2 lots & is on a corner. Must see to appreciate! Currently occupied so we will need 24 hour notice prior to showing

5. 2023-01-30
   listed $102,500 Active 333-char remark

   Show marketing remark (333 chars)

   Very cute smaller home. Perfect for starter home or empty nesters. Many updates have been made by seller. Screened in front porch with large back yard all fenced. Front yard is also fenced in. This home sits on 2 lots & is on a corner. Must see to appreciate! Currently occupied so we will need 24 hour notice prior to showing

6. 2017-09-08
   soldstatus
7. 2017-03-29
   listed $84,000
8. 1996-07-15
   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: $903 · $75/mo
• Projected year-2 tax: $996 · $83/mo
• Expected delta: +$93/yr (+$8/mo · 10.3%)

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

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone AO · 0% chance over 30 yrs
• 🔥 Wildfire 8/10 Severe
• 🌡 Heat 5/10 Major 7 d/yr ≥100°F today · 19 d/yr by 30 yrs out
• 💨 Wind 2/10 Low 0% chance of damaging wind over 30 yrs
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $14,099
• − Mortgage interest: −$6,974
• − Property taxes: −$903
• − Insurance: −$2,090
• − Repairs & maintenance: −$1,128
• − Management: −$1,128
• − Depreciation: −$3,622
• Taxable loss: −$1,746
• Est. tax savings @ 24.0%: +$419
• After-tax cash flow: $729/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)

• District: Hobbs Municipal Schools
• NCES district ID: 3501260
• Math proficiency: 17% —
• Reading proficiency: 31% —
• Median HH income: $52,575
• Composite: 24.53/100
• National rank: #13068
• State rank: #45 of 95 in NM

Livability — Hobbs

• Score: 66/100
• State rank: #37
• US rank: #11817

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Hobbs, NM
• County: Lea County · 41,557 people
• City population: 41,557
• Metro: Hobbs, NM
• Population (ZIP): 41,557
• Household income: $63,270
• Rent vs Own: 32.9% rent · 67.1% own
• Severe rent burden: 968.0

Population outlook (Lea County) Hauer SSP2

• Today (2025): 84,268 people
• By 2030: 91,695 · +8.8%
• By 2040: 108,366 · +28.6%
• By 2050: 126,264 · +49.8%
• By 2075: 170,606 · +102.5%
• By 2100: 199,235 · +136.4%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Majority Hispanic (63%)
• Race & ethnicity: Hispanic / Latino 63% Two or more races 32% White 29% Black 5%
• Hispanic origin (detail): Mexican 55%
• Common ancestry: Italian 2% Lithuanian 1% Slovak 1%
• Foreign-born: 18% · Canada
• Languages at home: 57% English-only · Spanish 41% German/W. Germanic 1%

Political lean MEDSL · Lea

• 2024 margin: Solid R (+61.6) · D 18.5% · R 80.1% · Other 1.3%
• 2008→2024 swing: -17.4pp toward R · 2008: -44.2pp · 2024: -61.6pp
• All cycles: 2024: R+61.6 2020: R+59.6 2016: R+48.5 2012: R+49.7 2008: R+44.2

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -246.71%
• Current HPI: 100.9905
• Rent YoY: —
• Metro: Hobbs, NM
• State GDP YoY: —
• F500 in state: 0

Price history

+48.2% since first listed

8 events — show timeline

• 2026-05-05 Price Changed $124,500 NMMLS
• 2026-04-20 Listed $127,000 NMMLS
• 2023-03-08 Sold (MLS) — NMMLS
• 2023-02-07 Pending — NMMLS
• 2023-01-30 Listed $102,500 NMMLS
• 2017-09-08 Sold (MLS) — NMMLS
• 2017-03-29 Listed $84,000 NMMLS
• 1996-07-15 Sold (Public Records) — Public Records

Property tax history

+10.4%/yr

Latest (2025): $903 · -1.2% YoY. Source: county tax records.