Investing in Otero County
Otero County covers 2 rental markets we actively finance in New Mexico — Alamogordo, Cloudcroft. Across those markets the median investment basis averages $295,000, a long-term lease averages $1,638/month, and the average all-in PITIA on a DSCR loan at the minimum down payment is $2,065. That produces a county-wide average DSCR ratio near 0.91x.
Basis varies more inside Otero County than the average suggests. Alamogordo is the lowest entry point at roughly $215,000, while Alamogordo currently models the strongest coverage ratio in the county at 1.29x. When two towns in the same county ratio differently, it is almost always the rent-to-price relationship rather than the rate — the same loan pricing applies county-wide, so the deal is won on which submarket you buy in.