New Mexico War Zone Investing

[Chase Swanson]

I was turned onto small multi family in Southeast ABQ New Mexico. I am hearing it called the war zone. I do not live there but have heard stories about needles in streets, prostitutes, and other things that happen in this area that may be something you would want to not be a part of.

When I run the numbers on the fourplexs and run them extremely conservative they still make a lot of sense financially. I am working with a realtor and another local guy who have had a lot of success in this area.

Is there anything to know or understand about this area that will make the numbers make less sense or watch out for?

Any information is greatly appreciated.

[Art Perkitny]

@Chase Swanson

The areas at the Southeast section of Albuquerque are going to be a mix of C/D (on an A to F scale) neighborhoods. Thats to say, they're not war zones but rather working class areas. With that in mind, as long as your underwriting is conservative, you should be fine. 

The areas that I would consider more of a "war-zone" would be the international district on the south-east part of town.

Here is a map that may help. It shows the risk score (A to F scale) for Census block groups in Albuquerque, which is competed by looking at data from the American Community Survey.