Cap rate, real cash flow, and return on the cash you put in — including the expenses most analyses leave out. Estimate only, not investment advice.
Estimates only — not investment, tax, or legal advice. How we calculate every figure
Estimated all-in monthly payment for a home price you have in mind.
What homeowners insurance costs in your state, and whether what you pay is out of line.
Income, savings, and debts in — max home price and qualification signal out.
A rental bought for $300,000 and sold seven years later for $394,780 nets $158,925 at closing — and owes about $24,753 of federal tax, $15,273 of it on depreciation you were required to take. Here is the math, why a sale with zero appreciation still owes tax, and the three clocks a fourth-quarter sale starts.
A leveraged rental makes money three ways and cash flow is only one of them. Here is what the other two are worth — and why the structure that maximises them is a bet, not a plan.
How to verify one specific rental deal: audit the seller's pro-forma line by line, comp a real rent, reassess the tax, age the systems, and price the offer the numbers actually support.
Set up basis correctly, claim the depreciation you are owed, survive the passive-loss rules, and know what the sale will cost — with every figure tied to the statute.
New Mexico guide
The most important number in New Mexico's insurance data is one you cannot read off a rate table.
The state's filed home-insurance rate change from 2024 to 2025 was +2.4% — well below the 6.0% national figure, and on its face a sign of an unusually calm market. It is not. In the same period New Mexico's cumulative 2020-2025 rate change was +45.8%, Insurify projects roughly +11% for 2026 on wildfire activity, and — this is the one that matters — the New Mexico Office of Superintendent of Insurance reported that insurers declined to renew a record number of homes in 2025.
Non-renewal, not price, has been this market's main adjustment mechanism. That is exactly why a filed rate change understates the pressure, and it is a different risk from an expensive premium. An expensive premium is a line item you can underwrite. A non-renewal is a property you can no longer insure on the terms your lender requires, arriving with 30 to 45 days' notice, on a house you have a tenant in.
New Mexico does have a FAIR Plan, which most Western states do not. Section 2 explains why that is genuinely good news and also why, for a landlord specifically, it is not the safety net it sounds like: it writes fire, extended coverage, and vandalism. No liability. No loss of rents.
A note before you start: this is general educational information about how rental property arithmetic works in New Mexico. It is not investment, tax, insurance, or legal advice, and it is not a recommendation about any property. Talk to a New Mexico CPA about tax treatment, a licensed New Mexico agent about a real quote, and a New Mexico attorney about anything contractual.
The statewide median sold price is $357,000 (New Mexico Association of Realtors, July 2026, up more than 10% year over year). Redfin's March 2026 read was $378,300 and Zillow's smoothed index $314,851; the Realtor closed-sale figure is used here.
Read the full New Mexico guide →20 min read · Updated 2026-08-28