403 S 3rd St · Lovington, NM 88260

$175,000

6 bd · 3.0 ba · 1,656 sqft · SingleFamily public records · 6 Days on market

Built 1950 0.48 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 +23.5/30.0
• DSCR +7.6/10.0
• ARV discount +7.5/15.0
• Schools +5.0/10.0
• 1% rule +4.9/10.0
• Livability +3.3/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks

If you are looking for an investment property with income potential, take a look at this 4-bedroom 1 bath home centrally located in the city of Lovington. The home features 4 bedrooms, 2 downstairs and 2 upstairs. The home has a large living room, kitchen with dining area and 1 bath. Extras are 2, 1-bedroom apartments with kitchens and baths each. The apartments are part of the original home. Outside you would find a large workshop and an older mobile home, that needs remodeling or replacing and an extra mobile home lot with hookups. This property has income potential. the property is being offered for sale in it's current AS IS condition.

Key facts

• Income potential
• Large workshop
• 0.48 acre lot

Tags

• LARGE WORKSHOP
• INCOME POTENTIAL
• EXTRA MOBILE HOME LOT

Property features AI

Exterior

• Parking: No garage
• Utilities: Public water; Electricity connected; Sewer connected
• Home design: Single family residence; Two-story home
• Construction: Stone and wood siding construction; Shingle roof
• Exterior features: RV hookup; Chain-link fenced yard; Workshop

Interior

• Kitchen: Free-standing range
• Flooring: Carpet; Hardwood; Vinyl
• Bathrooms: 3 full bathrooms
• Heating & cooling: Forced air heating; Central air conditioning; Electric cooling; Ceiling fans (cooling)
• Interior features: Ceiling fans

What this means for you Summary

Snapshot

• This is a 6-bed/3.0-bath single-family listed at $175k.

Deal economics

• At list price, monthly cash flow is $328 ($4k/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 $173k (1.4% below list).
• Recommended offer: $173k (1.4% below list) — sets the bar for 1% rule.

Location & tenants

• Location reads 66/100 on livability (#33 in NM) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A+; Watch: crime F, amenities F, commute F.
• Zoned schools: Taylor Middle (527 students, 99% FRL); Lovington High (math 44% / reading 54%, grade D, #51 of 110 statewide, top 50%, 737 students, 100% FRL).
• Market conditions: 72 active listings in the ZIP; 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 $1k of loan paydown is wiped out by about $5k 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

• Only 6 days on market — expect competitive offers; lowballing is unlikely to land.

Risks & watch-outs

• Watch-outs: built in 1950 — expect roof / HVAC / electrical / plumbing capex.
• 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 $172,555 (1.4% below list)

Questions for the listing agent

1. Built in 1950 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
2. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
3. Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
4. 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?
5. 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.
6. 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.
7. 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: 0.99% ✗
• Cap rate: 8.54%
• Cash-on-cash: 8.03%
• DSCR: 1.36
• GRM: 8.5

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: -4.1%
• Equity multiple: 0.85×
• Total profit: $-7,568
• Equity at exit: $26,093

10-year hold

• IRR: 5.5%
• Equity multiple: 1.41×
• Total profit: $19,956
• Equity at exit: $15,131

Cash invested: $49,000 (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 88260

• Active inventory: 72
• Price-to-rent: 8.5×

Monthly cashflow live

• Estimated rent: $1,726 medium
• Mortgage (P&I): −$918
• Tax from tax record: −$45 /mo · $538/yr
• Insurance: −$73
• HOA: −$0
• Vacancy / Maint / Mgmt: −$362
• Net cashflow: $328

Break-even live

Break-even rent $1,311

Max offer price $175,000

Occupancy floor 76%

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: $43,750
• Closing costs: $5,250
• Reserves months: —
• Total cash needed: —

Listing history 3 events

1. 2026-05-10
   status Pending
2. 2026-04-29
   listed $175,000 Active
3. 2006-05-19
   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: $538 · $45/mo
• Projected year-2 tax: $1,400 · $117/mo
• Expected delta: +$862/yr (+$72/mo · 160.1%)

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

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 10/10 Extreme
• 🌡 Heat 5/10 Major 7 d/yr ≥99°F today · 19 d/yr by 30 yrs out
• 💨 Wind 2/10 Low 100% chance of damaging wind over 30 yrs
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $20,707
• − Mortgage interest: −$9,803
• − Property taxes: −$538
• − Insurance: −$875
• − Repairs & maintenance: −$1,657
• − Management: −$1,657
• − Depreciation: −$5,091
• Taxable income: $1,087
• Est. tax owed @ 24.0%: −$261
• After-tax cash flow: $3,671/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)

No district data.

Livability — Lovington

• Score: 66/100
• State rank: #33
• US rank: #11541

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Lovington, NM
• Population (ZIP): 15,410

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: Predominantly Hispanic (66%)
• Race & ethnicity: Hispanic / Latino 66% White 31% Two or more races 26% Black 2%
• Hispanic origin (detail): Mexican 63%
• Common ancestry: Lithuanian 1% Portuguese 1% Serbian 1%
• Foreign-born: 21% · Canada
• Languages at home: 51% English-only · Spanish 49%

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: ▼ -124.50%
• Current HPI: 92.2391
• Rent YoY: —
• Metro: —
• State GDP YoY: —
• F500 in state: 0

Price history

3 events — show timeline

• 2026-05-10 Pending — NMMLS
• 2026-04-29 Listed $175,000 NMMLS
• 2006-05-19 Sold (Public Records) — Public Records

Property tax history

+2.7%/yr

Latest (2025): $538 · -8.3% YoY. Source: county tax records.