1105 Marshall Ave

Tularosa, NM 88352

$192,300D-

3 bd · 2.0 ba · 1,437 sqft · Built 1952 · SingleFamily · Active · 178 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,186/mo
• Mortgage (P&I): −$1,008
• Tax + insurance: −$143
• HOA: −$0
• Vac / Maint / Mgmt: −$249
• Net cashflow: $-214/mo
• Annual: $-2,573/yr
• Cap rate: 4.96%
• Cash-on-cash: -4.78%
• DSCR: 0.79
• 1% rule: 0.62%
• Cash to close: $53,844

Investor read

• This is a 3-bed/2.0-bath single-family listed at $192k.
• At list price, monthly cash flow is $-214 ($-3k/yr) — negative.
• To cash-flow at today's rent, offer at most $154k (19.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $119k (38.3% below list).
• It's been on market 178 days — a 12% lower offer ($169k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $119k (38.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $6k of value loss. Plan a longer hold.
• Location reads 66/100 on livability (#43 in NM) — a middle-class / working-renter tenant base. Strengths: crime A+, cost of living A+, housing A+; Watch: health & safety C-, amenities F, commute F.
• Tularosa Municipal Schools (town): math 11% / reading 48% proficiency, ranked #17 of 29 in NM (top 59%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 92% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Tularosa Intermediate (math 12% / reading 47%, grade F, #55 of 68 statewide, top 82%, 268 students, 92% FRL); Tularosa Middle (math 8% / reading 52%, grade F, #12 of 27 statewide, top 50%, 144 students, 92% FRL); Tularosa High (math 10% / reading 30%, grade F, #98 of 110 statewide, top 94%, 272 students, 95% FRL) — zoned schools at 93% FRL track the district average.
• Watch-outs: built in 1952 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: 69 active listings in the ZIP; 6 units permitted in Otero County in 2024 (0 in 5+ unit buildings).
• Otero County population projected to shrink 7% by 2050 — rents likely to lag national; underwrite the cash flow, not the appreciation.
• 5 sale attempts since 7y 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.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 7→23/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

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 178 days. Have you received any prior offers? Is the seller open to a 38% concession, seller financing, or rate buy-down credit?
• Built in 1952 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 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?
• 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?
• 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.