111 Homestead Trl

Homestead, NM 87821

$85,000C

2 bd · 2.0 ba · 896 sqft · Built 1987 · Other · Active · 350 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $859/mo
• Mortgage (P&I): −$446
• Tax + insurance: −$142
• HOA: −$5
• Vac / Maint / Mgmt: −$180
• Net cashflow: $86/mo
• Annual: $1,037/yr
• Cap rate: 7.51%
• Cash-on-cash: 4.36%
• DSCR: 1.19
• 1% rule: 1.01%
• Cash to close: $23,800

Investor read

• This is a 2-bed/2.0-bath other listed at $85k.
• At list price, monthly cash flow is $86 ($1k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($859 rent vs $85k).
• It's been on market 350 days — a 12% lower offer ($75k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $75k (12.0% below list) — sets the bar for market timing.
• In year one you build about $5k of equity ($588 loan paydown + $4k appreciation (5.2% local appreciation)).
• Location reads 45/100 on livability (#345 in NM) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, crime A; Watch: amenities F, commute F, employment F.
• Quemado Independent Schools (rural): math 25% / reading 75% proficiency, ranked #10 of 29 in NM (top 34%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; 67% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Quemado Elementary (86 students, 58% FRL); Quemado High (math 24% / reading 75%, grade D+, #36 of 110 statewide, top 45%, 71 students, 65% FRL).
• Market conditions: 41 active listings in the ZIP.
• Catron County population projected at -52% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (5.2% appreciation + 3.0% rent growth), your $24k cash investment doubles in ~4 years — after that, you're playing with house money.
• By year 7, paydown + projected appreciation supports a ~$32k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.

Questions for listing agent

• It's been on market 350 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• 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.
• 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.