6 Straight Arrow Rd

Taos, NM 87529

$275,000C-

4 bd · 3.0 ba · 2,326 sqft · Built 1995 · Other · Pending · 2 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,653/mo
• Mortgage (P&I): −$1,442
• Tax + insurance: −$194
• HOA: −$0
• Vac / Maint / Mgmt: −$557
• Net cashflow: $460/mo
• Annual: $5,522/yr
• Cap rate: 8.30%
• Cash-on-cash: 7.17%
• DSCR: 1.32
• 1% rule: 0.96%
• Cash to close: $77,000

Investor read

• This is a 4-bed/3.0-bath other listed at $275k.
• At list price, monthly cash flow is $460 ($6k/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 $265k (3.5% below list).
• Only 2 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $265k (3.5% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $8k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#49 in NM) — a middle-class / working-renter tenant base. Strengths: health & safety A+, cost of living B; Watch: housing D+, amenities D, crime F.
• Taos Municipal Schools (town): math 19% / reading 33% proficiency, ranked #43 of 95 in NM (top 45%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover; 77% free/reduced lunch — lower-income household profile, screen leases tightly.
• Zoned schools: Ranchos De Taos Elementary (math 24% / reading 24%, grade F, #63 of 68 statewide, top 97%, 272 students, 100% FRL); Taos Middle (326 students, 100% FRL); Taos High (math 10% / reading 70%, grade F, #61 of 110 statewide, top 61%, 758 students, 100% FRL) — zoned schools average 100% FRL vs 77% district-wide (23 pts higher); higher-poverty schools than district average — tighter screening recommended.
• Market conditions: 151 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 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 — expect insurance premiums to compound above CPI over the hold.

Questions for listing agent

• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?
• 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.
• 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.