212 S Shipp St · Hobbs, NM 88240

$975,000

None bd · None ba · — sqft · MultiFamily · 85 Days on market

Built 1960 Poor condition 0.40 ac lot

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Why this score? — see what drove the C 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 +26.3/30.0
• DSCR +8.9/10.0
• ARV discount +7.5/15.0
• 1% rule +7.0/10.0
• Livability +3.3/5.0
• Rent growth +2.5/5.0
• Schools +2.5/10.0
• Condition / age +1.0/5.0
• Appreciation +0.0/10.0

Multi-family units

County records classify this as Multi-Family (5+ Unit). Listing-text estimate: 12 units. confirmed

5+ unit building — per-unit beds/baths from public records are typically unavailable; the breakdown below (if shown) is an estimate from the listing text.

Listing remarks

This 12-unit multifamily property located at 212 S Shipp Street in Hobbs, New Mexico offers a fully stabilized investment opportunity with 100% occupancy and consistent in-place income. The property has demonstrated reliable performance with $96,000 in annual rental income and strong tenant demand in the Hobbs market, making it an attractive option for investors seeking immediate cash flow. Financial Overview Annual Rental Income: $96,000 Net Operating Income: ~$67,575 (before debt service) Occupancy: 100% Investment Highlights Fully occupied asset with stable tenant base Consistent income with no current vacancy Located in Hobbs with strong rental demand tied to the energy sector Simple,

Key facts

• 0.4 acre lot
• Built 1960
• Listed 84 days

Property features AI

Finance

• Financial info: Annual property tax listed ($8,771.44)

Exterior

• Home design: Multi-family property (Residential Income); Multi Unit (5+ units)
• Exterior features: Lot approximately 0.4017 acres (about 17,500 sq ft); Lot dimensions roughly 125' x 140'

Interior

• Heating & cooling: No heating
• Interior features: No central heating (listed as None)

What this means for you Summary

Snapshot

• This is a 12 × 1-bed/1-bath units multifamily listed at $975k. Condition is rated poor.

Deal economics

• At list price, monthly cash flow is $3k ($30k/yr) — positive. Per door: $209/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($12k rent vs $975k).
• Recommended offer: $916k (6.0% below list) — sets the bar for market timing.

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; 3 comparable units currently listed for rent nearby; rentals lingering (median 44d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% of comp listings sitting > 30 days — soft ceiling on asking rent; 172 units permitted in Lea County in 2024 (0 in 5+ unit buildings).
• At $11,704/mo this rent would consume 222% of the median local household income ($63k/yr) (locally 968% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $7k of loan paydown is wiped out by about $29k 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.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $273k cash investment doubles in ~10 years — after that, you're playing with house money.

Negotiation context

• It's been on market 85 days — a 6% lower offer ($916k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Climate carrying-cost: 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 $916,500 (6.0% below list)

Questions for the listing agent

1. It's been on market 85 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
2. Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
3. What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
4. Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
5. Built in 1960 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
6. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
7. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
8. 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?
9. 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?
10. 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.
11. 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.
12. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 1.20% ✓
• Cap rate: 9.38%
• Cash-on-cash: 11.02%
• DSCR: 1.49
• GRM: 6.9

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: 0.2%
• Equity multiple: 1.01×
• Total profit: $1,930
• Equity at exit: $145,376

10-year hold

• IRR: 9.9%
• Equity multiple: 1.76×
• Total profit: $208,097
• Equity at exit: $84,300

Cash invested: $273,000 (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: 83.3×

Monthly cashflow live

• Estimated rent: $11,704 medium
• Mortgage (P&I): −$5,113
• Tax est. 1.5%: −$1,219 /mo · $14,625/yr
• Insurance: −$406
• HOA: −$0
• Vacancy / Maint / Mgmt: −$2,458
• Net cashflow: $2,508

Break-even live

Break-even rent $8,529

Max offer price $975,000

Occupancy floor 74%

12-unit breakdown (identical units grouped — click to expand)

Units	Beds	Baths	Est. rent
▸ 12× units	1	1	$11,700
Total (12 units)			$11,704

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: $243,750
• Closing costs: $29,250
• Reserves months: —
• Total cash needed: —

Rent comps 3 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	44d	1	0.83mi
1122 3 E Broadway St Unit B-302 Hobbs, NM	3.0	2.0	976	$1,200	$1.23	44d	1	0.83mi
211 E Alto Dr Hobbs, NM	3.0	2.0	2066	$2,400	$1.16	44d	1	1.32mi

Listing history 16 events

1. 2026-06-18
   days on market $975,000 Active 85 DOM
2. 2026-06-17
   days on market $975,000 Active 84 DOM
3. 2026-06-16
   days on market $975,000 Active 83 DOM
4. 2026-06-15
   days on market $975,000 Active 82 DOM
5. 2026-06-14
   days on market $975,000 Active 80 DOM
6. 2026-06-13
   days on market $975,000 Active 79 DOM
7. 2026-06-10
   days on market $975,000 Active 77 DOM
8. 2026-06-09
   days on market $975,000 Active 76 DOM
9. 2026-06-08
   days on market $975,000 Active 75 DOM
10. 2026-06-07
    days on market $975,000 Active 74 DOM
11. 2026-06-05
    days on market $975,000 Active 71 DOM
12. 2026-06-02
    days on market $975,000 Active 69 DOM
13. 2026-06-01
    days on market $975,000 Active 68 DOM
14. 2026-05-31
    days on market $975,000 Active 67 DOM
15. 2026-05-30
    days on market $975,000 Active 66 DOM
16. 2026-03-25
    listed $975,000 Active

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Climate risk First Street

• 🌊 Flood 4/10 Moderate FEMA zone X (unshaded) · 22% 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 100% 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: $140,448
• − Mortgage interest: −$54,615
• − Property taxes: −$14,625
• − Insurance: −$4,875
• − Repairs & maintenance: −$11,236
• − Management: −$11,236
• − Depreciation: −$28,364
• Taxable income: $15,498
• Est. tax owed @ 24.0%: −$3,719
• After-tax cash flow: $26,378/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.

Condition & rehab AI · 2 photos

Poor 20/100 Extensive rehab

This 12-unit multifamily property requires extensive rehabilitation to improve its condition and increase its resale and rental value.

Repairs flagged

• Major exterior paint — Faded and chipped paint
• Major roof — Aged appearance
• Major exterior siding — Weathered and cracked asphalt
• Major interior walls — No photos, but likely in poor condition

Value-add opportunities

• Both paint exterior — Enhances curb appeal and property value
• Both repair roof — Improves property value and reduces maintenance costs
• Both repair parking lot — Enhances curb appeal and property value

Renovation cost estimate screening

Repair item	Severity	Est. cost
exterior paint · Faded and chipped paint	Major	$15,000–50,000
roof · Aged appearance	Major	$15,000–50,000
exterior siding · Weathered and cracked asphalt	Major	$15,000–50,000
interior walls · No photos, but likely in poor condition	Major	$15,000–50,000
Total estimated repair cost · 4 items		$60,000–200,000

Value-add ROI direction

• Both paint exterior — Enhances curb appeal and property value ↑
• Both repair roof — Improves property value and reduces maintenance costs ↑
• Both repair parking lot — Enhances curb appeal and property value ↑

ⓘ Cost ranges are severity-bucket heuristics (US national rule-of-thumb). Get contractor quotes + a written scope before underwriting a rehab budget.

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

1 event — show timeline

• 2026-03-25 Listed $975,000 NMMLS