In this edition of The TurboTenant report, we will be focusing on the best places to buy an investment property in New Mexico. Two towns made our list: Las Cruces and Rio Rancho. We curated data from studies on the best places to buy an investment property, median sale prices, and proprietary TurboTenant data. The TurboTenant Data includes stats on the average number of leads a rental property received, as well as the average number of days on the market. These two points will help an investor determine the strength of the rental market, as well as estimating potential vacancy rates.
Located in the Southwest and one of the Four Corners, New Mexico is full of adventure and diversity. With colder climates to the north and a hot and arid climate to the west and south, you can get a little taste of everything from ice caves to monasteries to the Smokey Bear Historical Park. New Mexico is known for its flourishing arts community where museums are full of local state artists to paintings by renowned artists such as Georgia O’Keeffe. It’s a hotspot for U.S. national security agencies and it is where the country’s first atomic bomb was built and tested. New Mexico is also a great place for conspiracy theory lovers as you can tour the Roswell UFO Museum all about crop circles, ancient astronauts, and abductions.
We can’t promise that you’ll spot a UFO in New Mexico, but we have spotted the places to buy a rental investment property in the The Land of Enchantment – let’s check it out.
#2: Rio Rancho
Rio Rancho is a great place for retirement communities as well as new families which is why it is one of the fastest growing cities in the state. Just north of Albuquerque, it is in a great location to easily access many of the attractions of New Mexico – not to mention it has great local restaurants and art. With a high population and employment growth, the median sale price is only $192k and rent is around $984. Along with extreme affordability, property investors should expect around 42 leads per property and only 13 days on the market – sounds good to us.
- Population growth: 3.5%
- Employment growth: 2.2%
- Increase in home values: 6.6%
Median Sale Price: $192k
Average Rent: $984
Average Number of Leads per Property: 42
Number of days on the rental market: 13
#1: Las Cruces
Las Cruces likes to brag about its 350 days of sunshine a year. It has been voted a top place to retire and one of the best places to live for families. Located in southern New Mexico, this town is at the foot of the majestic Organ Mountains and along the banks of the Rio Grande – it’s also home to New Mexico State University. It has a steady population and employment growth and is extremely affordable with an average rent of $719 and median sale price of $192k. Property investors can expect a large number of retired folks and university students looking to rent, giving landlords around 41 leads per property and only eight days on the market! Las Cruces clearly deserves our #1 spot.
- Population growth: 1.5%
- Employment growth: 2.1%
- Increase in home values: 1.9%
Median Sale Price: $192k
Average Rent: $719
Average Number of Leads per Property: 41
Number of days on the rental market: 8
Once you’ve landed the perfect investment property in a good location, TurboTenant can help take your landlording into the digital world by streamlining the rental process with easy and free online rental applications as well as thorough tenant screening so you can find the best renter for your property.
About the TurboTenant Report
The TurboTenant Report analyzes data from active listings across all 50 states, as well as third party real estate, population and employment growth data. Our goal with the TurboReport is to empower seasoned and novice investors to make wise purchasing decisions when purchasing a rental investment property. For more information or custom data requests, please contact [email protected].
Methodology:
In order to determine the best cities to invest in each state, we curated data from a number of reputable sources as well as using TurboTenant proprietary data. Our main city selections were taken from a study that evaluated four main factors for each city: employment growth, population growth, increase in home values and rental yield. We combined that with TurboTenant data on the average rent price, the number of rental leads per property, as well as the average number of days the rental stays on the market.
We also included an honorable mention where applicable. They are pulled from this study on the best places to invest in every state. These were determined using Zillow’s Buyer-Seller Index and Zillow Home Value Forecast, and AreaVibes’ Livability Score. Other methods for determining honorable mentions include using TurboTenant proprietary data to determine which cities return the best rental investment R.O.I. using data points including days on market, the number of leads per property, and average rent price.
DISCLAIMER: TurboTenant, Inc does not provide legal advice. This material has been prepared for informational purposes only. All users are advised to check all applicable local, state and federal laws and consult legal counsel should questions arise.
Sources:
- TurboTenant Rental Data
- Fastest Growing States Population
- The Best and Worst Cities to Own Investment Property
- Real Estate data provided by Redfin, a national real estate brokerage.
