2061 Solara Loop NE

Rio Rancho, NM 87144

$379,900D-

4 bd · 2.5 ba · 2,339 sqft · Built 2016 · SingleFamily · Pending · 87 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,579/mo
• Mortgage (P&I): −$1,992
• Tax + insurance: −$386
• HOA: −$35
• Vac / Maint / Mgmt: −$542
• Net cashflow: $-375/mo
• Annual: $-4,506/yr
• Cap rate: 5.11%
• Cash-on-cash: -4.24%
• DSCR: 0.81
• 1% rule: 0.68%
• Cash to close: $106,372

Investor read

• This is a 4-bed/2.5-bath single-family listed at $380k.
• At list price, monthly cash flow is $-375 ($-5k/yr) — negative.
• To cash-flow at today's rent, offer at most $314k (17.5% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $258k (32.1% below list).
• It's been on market 87 days — a 6% lower offer ($357k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $258k (32.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $11k of value loss. Plan a longer hold.
• Location reads 71/100 on livability (#17 in NM) — a middle-class / working-renter tenant base. Strengths: housing A+, cost of living A; Watch: amenities D, commute F.
• Rio Rancho Public Schools (suburban): math 48% / reading 73% proficiency, ranked #4 of 29 in NM (top 14%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Ernest Stapleton Elementary (815 students, 17% FRL); Eagle Ridge Middle (823 students, 100% FRL); Cleveland High School (math 46% / reading 70%, grade C, #32 of 110 statewide, top 28%, 2,631 students, 18% FRL).
• Market conditions: Rents rising fast (+6.9%/yr); 1325 active listings in the ZIP; 9 comparable units currently listed for rent nearby; rentals leasing fast (median 14d on market — plan ~1-2 weeks tenant-placement turnaround); solid renter incomes; 1,278 units permitted in Sandoval County in 2024 (216 in 5+ unit buildings).
• Sandoval County population projected at +15% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Cap rate 5.1% vs local median 3.6% in Rio Rancho — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.
• This rent runs 33% of the median local income ($95k/yr) — at the standard rent-burdened threshold; future hikes will face affordability resistance.

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 87 days. Have you received any prior offers? Is the seller open to a 32% 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.
• 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.
• 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.