RentalCalcs Editorial · new-mexico-2026-10-19-v1 · Reviewed 2026-10-19

New Mexico: evidence to offer worksheet

Free property worksheet. Entries remain in this browser page and are not submitted or saved. Print or save your completed worksheet before closing. The worked example is hypothetical, not a property quote or market forecast.

Return to report

1. Match the evidence

Northmarq’s page 4 describes recently closed caps at 6.5% or higher, while page 1 calls recent market-rate deals high-6%. Both are approximate descriptions, not a precise pair of endpoints. Keep the 5.8% trailing average separate from recent market-rate underwriting. An increased share of affordable and older properties also changes price-per-unit statistics; it does not prove every existing apartment lost the same value.

2. Complete the local document checks

Albuquerque: identify which properties actually traded

Request each comparable’s rent restrictions, actual closing price, income convention and capital schedule. Separate one-time rehabilitation from recurring maintenance and document any buyer assumption about released restrictions.

Albuquerque lease-ups: the recovery needs a collection test

Obtain unit-level incentives, delinquency aging and signed renewal terms. Model vacancies and expiring concessions month by month; do not turn a quarterly asking-rent gain into an annual growth guarantee.

Albuquerque submarkets: resolve the pipeline before assigning a local premium

List competitors near the subject, confirm affordability/program status and actual leasing dates, then match bedroom mix and effective rents. Keep permits, active construction and completed vacant units separate.

Santa Fe: establish an independent income and insurance basis

Obtain local assessor guidance, use documentation and a commercial insurance quote with wildfire, flood, ordinance and income-restoration terms. Confirm required work and lender acceptance before using the seller’s expense budget.

Las Cruces, southern New Mexico and rural counties: test liquidity as well as rent

Request local closing-income evidence, lender proceeds, management quotes and inspection bids. Test longer sale timing and separately funded repair cash without claiming that Albuquerque provides the terminal cap.

3. Reconcile the buyer budget

Worked example · annual dollars except acquisition amounts
ItemExample
Purchase price$2,200,000
Scheduled annual rent$312,000
Other recurring income$6,000
Collection / concession / vacancy loss-$28,000
Effective income$290,000
taxes$28,000
insurance$18,000
utilities$20,000
maintenance$26,000
management$20,000
administration$13,000
Recurring expense total$125,000
NOI before debt and reserve$165,000
Annual debt service$102,738
Annual replacement reserve$12,000
Cash after debt and reserve$50,262
Down payment + closing + initial work$1,034,000

Loan $1,320,000 at an assumed 6.75% for 30 years, monthly amortization. Going-in cap 7.50%; DSCR 1.61× before reserve, 1.49× after reserve; cash-on-cash 4.86%. Cash basis excludes an initial reserve deposit; add any lender-required deposit. No loan quote is implied.

4. Test the exit and invalidate the thesis

Value = annual NOI ÷ (cap percent ÷ 100). Keep cumulative NOI change separate from annual rent growth. A simple value comparison excludes debt payoff, sale costs, income tax and interim cash flows.

Identify the income restrictions

Classify conventional, affordable, partially affordable and nonstandard leases. Match comparable closing income to the same framework.

Reconcile two operating samples

Choose the relevant inventory and rent definition; do not average conflicting pipeline or vacancy figures. Verify local competitor leasing directly.

Price the funded operating plan

Replace taxes and insurance, inspect capital work and fund the collection shortfall. Stress a wider exit before relying on a future market recovery.

Evidence ledger