9 Castle Rd

Questa, NM 87556

$259,000D

3 bd · 2.0 ba · 1,394 sqft · Built 1970 · SingleFamily · Active · 99 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,174/mo
• Mortgage (P&I): −$1,358
• Tax + insurance: −$432
• HOA: −$0
• Vac / Maint / Mgmt: −$457
• Net cashflow: $-72/mo
• Annual: $-869/yr
• Cap rate: 5.96%
• Cash-on-cash: -1.20%
• DSCR: 0.95
• 1% rule: 0.84%
• Cash to close: $72,520

Investor read

• This is a 3-bed/2.0-bath single-family listed at $259k. Condition is rated average.
• At list price, monthly cash flow is $-72 ($-869/yr) — negative.
• To cash-flow at today's rent, offer at most $249k (4.0% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $217k (16.1% below list).
• It's been on market 99 days — a 9% lower offer ($236k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $217k (16.1% below list) — sets the bar for 1% rule.
• In year one you build about $10k of equity ($2k loan paydown + $8k appreciation (3.0% local appreciation)).
• Location reads 59/100 on livability (#129 in NM) — a working-class tenant base; expect higher turnover. Strengths: cost of living A+, housing A+; Watch: health & safety C-, employment D+, schools F.
• Questa Independent Schools (rural): math 7% / reading 23% proficiency, ranked #79 of 95 in NM (top 83%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 89% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 60 active listings in the ZIP; 127 units permitted in Taos County in 2024 (0 in 5+ unit buildings).
• Taos County population projected at -16% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• 2 sale attempts; this cycle's ask has dropped $81k (24%) from the opening price — seller is motivated, your offer sets the floor, not the list.
• At projected returns (3.0% appreciation + 3.0% rent growth), your $73k cash investment doubles in ~7 years — after that, you're playing with house money.
• By year 4, 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

• 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 99 days. Have you received any prior offers? Is the seller open to a 16% concession, seller financing, or rate buy-down credit?
• Built in 1970 — 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.

Repairs flagged (vision-AI assessment)

• Minor: kitchen cabinets — dated and could be replaced
• Minor: bathroom fixtures — standard and could be updated