Home Buying in Rio Rancho>Question Details

rogbates, Home Buyer in Rio Rancho, NM

My wife and I are looking to purchase a second home for investment. We're wondering what the best/strongest areas are for home rentals in Rio Rancho?

Asked by rogbates, Rio Rancho, NM Sun Sep 23, 2012

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River's Edge is good and rents are comparable to Enchanted Hills. River's Edge just has older houses and some have polybutelene plumbing which most investors have to take an initial hit on transferring over to Aqua-pex. I have had investors that would choose River's Edge but Enchanted Hills and Northern Meadows have been hit harder with foreclosures and that is where the better deals are usually found.
0 votes Thank Flag Link Mon Sep 24, 2012
Hi Rog,

I had an investor that bought close to twenty houses and is now making over $60,000/year from our wise investing. I can start you off the same way.

The best thing is, is that my knowledge and hard work is paid for by the seller and the foreclosures are starting to increase in numbers and some of the best deals come in the winter months.

Arthur
0 votes Thank Flag Link Mon Sep 24, 2012
I like River's Edge. It's a nice area and you are right abouit the easy I-25 access. It's been a couple months since I ran any comps for the neighborhood but the last ime I did River's Edge looked to have a little stronger market than most other areas of Rio Rancho, likely for reasons you have mentioned. I have clients that own rentals there that do quite well. Do you live there now? I can see the benifit of having a rental close to you.
Bottom line is just do the math. If you calculate your cash flow, cap rate and return on investment you can compare homes in River's Edge, Corrales Heights, Cabezon, Northern Meadows or any other neighborhood with each other. When buying for investment it is a business decision, never chose a house based on emotion, only buy if the numbers make sense. If you want a certain neighborhood, like River's Edge, search there but still check the numbers. Also, if a bargain comes up in River's Edge be ready, they go fast.
0 votes Thank Flag Link Mon Sep 24, 2012
We appreciate the input. I'm curious why one section we like a lot has not been mentioned. What about the River's Edge area? It's close to 550 for easy access to I-25 and some of the homes have nice mtn views. Is there a reason it's not a desireable for rental property? Again thank for your thoughts!
0 votes Thank Flag Link Sun Sep 23, 2012
River's Edge is a nice area. Currently, homes in River's Edge range from $135,000 - $420,000. Since January, homes in the area have sold between $136,000 - $334,900. To view available homes in River's Edge, go to: http://goo.gl/boM51

Leigh-Jo
Syan Real Estate
Call/Text: (505) 730-8181
Flag Mon Sep 24, 2012
Contact me if you are open to an investment property in Albuquerque that is a good deal.
0 votes Thank Flag Link Sun Sep 23, 2012
Right now some of the lowest prices (price per square foot) are in Northern Meadows. In my opinion, this area has been depressed but on the cusp of a snap back. It is closely located to the brand new hospital, the Star Center and the new high school, Cleveland.
0 votes Thank Flag Link Sun Sep 23, 2012
Rents may be higher in Cabezon but prices are higher there. Cash flow is king. You want to know what you can rent for before you by. Enchanted Hills is good because you have potential renters that work in Rio Rancho and those that commute to both Albuquerque and Santa Fe or Los Alamos. I personally like Northern Meadows. It is probably the neighborhood hardest hit by the down turn and there are lots of good deals there. I recently ran a check and 47% of the market there is distressed properties (foreclosures and short sales). I just saw a foreclosure in pretty good shape come up at $129,000 for a floor plan that sold for about $220,000 new. With the new UNM Hospital, City Hall and HP near there I think you've got a pretty good potential tenant pool.
Regardless of what neighborhood you buy in do the math; figure your cash flow, cap rate and your return of investment. By doing the math you can compare houses in different neighborhoods.
Congratulations on becoming a real estate investor. This is a great time to do it.
0 votes Thank Flag Link Sun Sep 23, 2012
Hello,

There are a lot of factors to consider. Before looking at locations, one of the first things you'll need to do, which will actually help determine location, is figure out your buying power.

Connecting with a mortgage lender will assist in determining how much you can spend and what you'll need for down payment (likely 20%).

Once you know how much you qualify for and what a comfortable payment would be, you'll then begin to see which areas are an option for you.

While it may be tempting to begin searching first, you don't want to waste efforts hunting in areas where homes are selling at $150,000+, if you're qualifying amount has you at $90,000 - $100,000.

If you have more questions or would like to discuss other important factors, feel free to contact me. Since the seller pays my commission, there is no cost to you for my assistance.

Regards,

Leigh-Jo
Syan Real Estate
Call/Text: (505) 730-8181
Web Reference: http://www.Syan.com
0 votes Thank Flag Link Sun Sep 23, 2012
Based on our company's experience, the Cabezon area is a great area for rentals. It is close to Albuquerque and close to the new hospital in Rio Rancho. This area is seeing higher rental prices than other neighborhoods further north in Rio Rancho.
0 votes Thank Flag Link Sun Sep 23, 2012
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