Multi-Family Investing in New Mexico

[Melissa Treuman]

Hi, I'm wondering if anyone has any experience with real estate investing in Santa Fe and/or Albuquerque.  I'm primarily interested in multi-family homes but am looking to learn more about the market as a whole.  Thanks!

[Robert Carmody]

Hi Melissa, I have experience representing investor clients in both Santa Fe and Albuquerque, and with both multi unit and SFR. Locally, Santa Fe and Albuquerque are considered 2 different markets, and many differences between the two. And, within Santa Fe, you almost have 2 different markets between the area around the Plaza or the vacation/luxury market and then areas south of the Plaza that try to cater to demands for more affordable housing. There is a shortage of affordable multi unit rentals in Santa Fe, but the building costs are also high in Northern NM, so there are some different challenges there. Real estate prices and construction costs are lower in Albuquerque, and ABQ is typically a pretty stable market to own rentals property. It may not set the world on fire with high returns, but the rent is solid, vacancy low, and we don't experience the volatility that other markets in neighboring states do. Multi Unit will generate a little bit more of a return than SFRs, but I have clients with large portfolios of SFRs that do well with them too, and like that they appreciate with the housing market more consistently than the multi units. Right now the inventory of multi units is very low, but there are a few good opportunities. Investors often focus on the UNM/Nob Hill area due to the student population, but there are some good options in the Downtown/Old Town area where the acquisition costs will be lower and profit margin higher, and sometimes the Uptown has good options. Rio Rancho doesn't have many multi unit properties, but there are plans for several multi unit buildings to be built, which are available to purchase or reserve and purchase once complete. I think it is a market to watch because there is a concern of a real shortage of rentals on the horizon. Let me know if you have other questions or need any help. I've been working with investors here for about 14 years, and currently have customers with recent investments in both Santa Fe and Albuquerque. I've helped several acquire large portfolios of income properties, as well as others that like to renovate and flip houses, and have a couple customers that enjoy the Airbnb or short term rentals. Happy to answer any questions you have.

Robert Carmody