8401 Pan American NE #320

Albuquerque, NM 87113

$155,000D+

4 bd · 2.0 ba · 1,477 sqft · Built 2022 · Manufactured · Active · 232 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,892/mo
• Mortgage (P&I): −$813
• Tax + insurance: −$258
• HOA: −$700
• Vac / Maint / Mgmt: −$397
• Net cashflow: $-276/mo
• Annual: $-3,318/yr
• Cap rate: 4.15%
• Cash-on-cash: -7.64%
• DSCR: 0.66
• 1% rule: 1.22%
• Cash to close: $43,400

Investor read

• This is a 4-bed/2.0-bath manufactured listed at $155k. Condition is rated good.
• At list price, monthly cash flow is $-276 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $115k (25.8% below list).
• Meets the 1% rule at list price ($2k rent vs $155k).
• It's been on market 232 days — a 12% lower offer ($136k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $115k (25.8% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Location reads 72/100 on livability (#13 in NM) — a middle-class / working-renter tenant base. Strengths: amenities A+, commute A+, cost of living A+; Watch: crime F.
• Albuquerque Public Schools (urban): math 51% / reading 75% proficiency, ranked #3 of 29 in NM (top 10%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease; 60% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Edmund G Ross Elementary (405 students, 100% FRL); Desert Ridge Middle (816 students, 16% FRL); La Cueva High (math 72% / reading 85%, grade A-, #8 of 110 statewide, top 6%, 1,816 students, 12% FRL) — zoned schools average 43% FRL vs 60% district-wide (17 pts lower); this property's tenant base skews higher-income than the district average.
• Zoned-school proficiency averages 78% at this address vs 63% district-wide (+16 pts) — the actual schools serving this property are materially stronger than the Albuquerque Public Schools average implies; a family-tenant draw the district grade alone would hide.
• Watch-outs: HOA is 37% of rent.
• Market conditions: Rents soft (-2.3%/yr); 129 active listings in the ZIP; 22 comparable units currently listed for rent nearby; rentals leasing fast (median 10d on market — plan ~1-2 weeks tenant-placement turnaround); 41% of comp listings sitting > 30 days — soft ceiling on asking rent; solid renter incomes; 1,316 units permitted in Bernalillo County in 2024 (546 in 5+ unit buildings).

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 232 days. Have you received any prior offers? Is the seller open to a 26% 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.
• Schools are D-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?