All Forum Posts by: Audrey Blotz

Hi, 

I have 4 SFH and a 4plex doing LTR and MTRS in New Mexico, now, I have the opportunity to talk with a motel owner who is willing to do owner financing. His motel has been shut down since COVID-19 for not being up to code, now, he has renovated it and water/electricity is running. He is asking for 800k, 25% DP, and 9% interest which I think is ridiculous for owner financing. I am a nurse and I have an addiction MD partner planning to turn this 20-door motel into nonprofit sober living which the area is in desperate need of. Medicaid will pay for each client/tenant.

I tried to call several appraisers but 2 of them who responded refused to do valuation. Its hard to find appraisers to service this area. They usually have to travel 2.5 hours.

My questions are:

1.) Does it have to be specifically a hospitality appraiser or can just a commercial appraiser do it? One of the appraiser has been asking for rent rolls but the motel has been shut down since covid. 

2.) What documentation do I have to do during this 1st part of my acquisition before I do my whole due diligence? Letter of intent to the owner? 

Can someone tell me the step-by-step? My partner is a member of Andersons Advisors, I just want to have an Idea of how can we work around this deal.

Thank You

Katrina

@Audrey Blotz welcome to the exciting world of RE investing.
There are some great Meetups in town that you can attend. 

Investing in Albuquerque Real Estate Meetup | Meetup

Apartment Investor Breakfast | Meetup

Get around other investors is the best way to make progress!

Hello BiggerPockets Community!

I've been diving deep into the Albuquerque, NM real estate market recently and wanted to share my findings and insights with fellow investors. Whether you're a local or considering investing from out of state, I believe Albuquerque has some unique opportunities, but as always, there are factors to consider.

1. Market Overview

• Economic Growth: Albuquerque's economy is a blend of military bases, nuclear research facilities, and universities. The local economy is anchored by institutions such as the University of New Mexico (UNM), Sandia National Laboratories, and Kirtland Air Force Base. This diversity provides a certain level of stability to the job market.
• Population Trends: The population has seen modest growth in the last decade. There's a mix of younger professionals drawn to the tech and education sectors, as well as retirees attracted to the area's mild climate and cultural attractions.

2. Opportunities

• Affordability: Compared to many West Coast markets, Albuquerque properties often come at a more affordable price point, making it possible for investors to get started without a massive initial capital.
• Rental Demand: Due to the presence of UNM and other educational institutions, there's a consistent demand for rental properties, especially those close to campuses.
• Cultural Appeal: With its rich Native American and Hispanic heritage, Albuquerque offers cultural festivals, markets, and historical sites. Properties in or near these cultural zones can be prime for short-term rentals or Airbnb.

3. Considerations

• Crime Rates: Some parts of Albuquerque have historically struggled with higher crime rates. It's essential to do your due diligence and perhaps consider investing in more established or upcoming neighborhoods.
• Property Taxes: New Mexico's property taxes are relatively low in comparison to other states. However, ensure you understand the local tax structure and any potential future changes.
• Economic Dependence: While Albuquerque has a diversified economy, it's worth noting that government and military jobs play a significant role. Any changes in federal spending could influence the job market and, subsequently, the real estate market.

4. Local Investment Strategies

• House Hacking: Given the affordable entry prices, Albuquerque can be a great place to start house hacking, especially near the university areas.
• BRRRR: For those familiar with the Buy, Rehab, Rent, Refinance, Repeat method, there are opportunities in Albuquerque to purchase under-valued properties, especially in areas undergoing gentrification.
• Airbnb/Short Term Rentals: As previously mentioned, the city's rich cultural appeal can make certain properties lucrative for short-term rentals. However, always stay updated on local regulations related to STRs.

In conclusion, Albuquerque presents a fascinating blend of opportunities for both new and seasoned real estate investors. As with any market, there are risks and rewards. But with the right strategy and due diligence, Albuquerque might just be the next great investment hotspot.

Would love to hear from other BiggerPockets members who have experience in the Albuquerque market. Share your stories, tips, and insights!

Happy Investing! 

P.S. If anyone is looking to network or co-invest in the Albuquerque area, feel free to DM me. Always looking to collaborate and learn from fellow BP members!

We go through Albuquerque to Santa Fe & Taos. I know the area. You can find off market with Propstream, but most newbies spend a lot of time trying to figure out what matters with that much data. If you are going to buy "off market" you may as well learn how to do that correctly so you can repeat the process and profit. Kind of like this:

With $50,000 you can buy 3 Properties in 2024 – These are the Best Markets

https://www.biggerpockets.com/forums/311/topics/1166342-with...