518 W 7th Ave · Truth or Consequences, NM 87901

$68,000

2 bd · 1.0 ba · 941 sqft · SingleFamily public records · 15 Days on market

Built 1948

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Why this score? — see what drove the B- 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 +30.0/30.0
• DSCR +10.0/10.0
• 1% rule +7.8/10.0
• ARV discount +7.5/15.0
• Livability +3.2/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Schools +2.0/10.0
• Appreciation +0.0/10.0

Listing remarks

Come take a look at this 2 bed 1 bath, 941 sq ft home located just minutes from downtown Truth or Consequences and the local Hot Springs! This home sits on a corner lot, has ample yard space and a one car detached garage. Inside features include carpet and linoleum flooring, open living room, kitchen area with cabinets and a separate dining room. This property is also being dual pathed through the auction platform, to submit offers/bids or view additional details, please visit www. homes4purchase.com. All offers/bids will be subject to Seller Approval. USDA Property. The seller will convey the title by Quit Claim Deed. All closing costs, including tax stamps and transfer taxes (unless other

Key facts

• Garage
• Built 1948
• Listed 15 days

Property features AI

Exterior

• Parking: Detached 1-car garage; 1 covered parking space (1 total parking space)
• Utilities: Public water; Electricity connected; Sewer connected
• Home design: Single-family residence; One story; Residential property
• Construction: Stucco construction; Built with a single-story layout
• Exterior features: Flat roof; Irregular lot

Interior

• Kitchen: Free-standing range
• Flooring: Carpet; Other
• Bathrooms: 1 full bathroom
• Heating & cooling: Wall furnace heating; Window unit cooling
• Interior features: Free-standing range; Carpet and other flooring

What this means for you Summary

Snapshot

• This is a 2-bed/1.0-bath single-family listed at $68k.

Deal economics

• At list price, monthly cash flow is $260 ($3k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($873 rent vs $68k).
• Recommended offer: $67k (1.5% below list) — sets the bar for market timing.

Location & tenants

• Location reads 65/100 on livability (#60 in NM) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A, health & safety A; Watch: schools F, crime F, commute F.
• T Or C Municipal Schools (town): math 25% / reading 25% proficiency, ranked #29 of 29 in NM (top 100%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 70% free/reduced lunch — lower-income household profile, screen leases tightly.
• Market conditions: 91 active listings in the ZIP.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $470 of loan paydown is wiped out by about $2k of value loss. Plan a longer hold.
• Sierra County population projected at -38% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $19k cash investment doubles in ~8 years — after that, you're playing with house money.

Negotiation context

• It's been on market 15 days — a 2% lower offer ($67k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Watch-outs: built in 1948 — expect roof / HVAC / electrical / plumbing capex.
• Climate carrying-cost: moderate wildfire risk; extreme-heat days projected 7→22/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.

Recommended offer $66,980 (1.5% below list)

Questions for the listing agent

1. Built in 1948 — 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 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?
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: 1.28% ✓
• Cap rate: 10.88%
• Cash-on-cash: 16.39%
• DSCR: 1.73
• GRM: 6.5

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: 7.4%
• Equity multiple: 1.29×
• Total profit: $5,531
• Equity at exit: $10,139

10-year hold

• IRR: 16.7%
• Equity multiple: 2.37×
• Total profit: $26,095
• Equity at exit: $5,879

Cash invested: $19,040 (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 87901

• Active inventory: 91
• Price-to-rent: 6.5×

Monthly cashflow live

• Estimated rent: $873 medium
• Mortgage (P&I): −$357
• Tax from tax record: −$45 /mo · $537/yr
• Insurance: −$28
• HOA: −$0
• Vacancy / Maint / Mgmt: −$183
• Net cashflow: $260

Break-even live

Break-even rent $544

Max offer price $68,000

Occupancy floor 65%

Sensitivity live

Price	-10% $299	-5% $279	+0% $260	+5% $241	+10% $222
Rent	-10% $191	-5% $226	+0% $260	+5% $295	+10% $329
Rate	-1.0pp $294	-0.5pp $277	base $260	+0.5pp $242	+1.0pp $224

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: $17,000
• Closing costs: $2,040
• Reserves months: —
• Total cash needed: —

Listing history 2 events

1. 2026-05-14
   status Pending
2. 2026-04-29
   listed $68,000 Active

ⓘ 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: $537 · $45/mo
• Projected year-2 tax: $544 · $45/mo
• Expected delta: +$7/yr (+$1/mo · 1.3%)

ⓘ 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 · 0% chance over 30 yrs
• 🔥 Wildfire 5/10 Major
• 🌡 Heat 5/10 Major 7 d/yr ≥97°F today · 22 d/yr by 30 yrs out
• 💨 Wind 1/10 Low
• 🫁 Air quality 1/10 Low 0 unhealthy d/yr today · 0 by 30 yrs out

Taxation est. · year 1

• Rental income: $10,477
• − Mortgage interest: −$3,809
• − Property taxes: −$537
• − Insurance: −$340
• − Repairs & maintenance: −$838
• − Management: −$838
• − Depreciation: −$1,978
• Taxable income: $2,136
• Est. tax owed @ 24.0%: −$513
• After-tax cash flow: $2,608/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)

• District: T Or C Municipal Schools
• NCES district ID: 3502610
• Math proficiency: 25% ▲ 1.00%
• Reading proficiency: 25% ▼ -7.00%
• Median HH income: $28,449
• Composite: 20.0/100
• National rank: #8666
• State rank: #29 of 29 in NM

Livability — Truth or Consequences

• Score: 65/100
• State rank: #60
• US rank: #13470

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Truth or Consequences, NM
• Population (ZIP): 6,459

Population outlook (Sierra County) Hauer SSP2

• Today (2025): 9,498 people
• By 2030: 8,580 · -9.7%
• By 2040: 6,994 · -26.4%
• By 2050: 5,914 · -37.7%
• By 2075: 4,083 · -57.0%
• By 2100: 2,499 · -73.7%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Majority White (59%)
• Race & ethnicity: White 59% Hispanic / Latino 34% Two or more races 18% Native American 5%
• Hispanic origin (detail): Mexican 22%
• Common ancestry: Slovak 2% Lithuanian 2% Portuguese 1%
• Foreign-born: 3% · Canada
• Languages at home: 83% English-only · Spanish 16% French/Haitian/Cajun 1%

Political lean MEDSL · Sierra

• 2024 margin: R (+19.2) · D 39.2% · R 58.3% · Other 2.5%
• 2008→2024 swing: -7.1pp toward R · 2008: -12.1pp · 2024: -19.2pp
• All cycles: 2024: R+19.2 2020: R+21.5 2016: R+27.2 2012: R+18.9 2008: R+12.1

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -85.64%
• Current HPI: 118.3055
• Rent YoY: —
• Metro: —
• State GDP YoY: —
• F500 in state: 0

Price history

2 events — show timeline

• 2026-05-14 Pending — NMMLS
• 2026-04-29 Listed $68,000 NMMLS

Property tax history

+9.2%/yr

Latest (2025): $537 · +0.8% YoY. Source: county tax records.