Is Eldorado, New Mexico Good for Airbnb Investment?

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Eldorado, New Mexico Airbnb Investment Overview

Is Airbnb a Good Investment in Eldorado, New Mexico?

Investing in Airbnb properties in Eldorado, New Mexico, presents a more challenging opportunity compared to major metropolitan markets. This small unincorporated community near Santa Fe offers a quieter, rural setting that may appeal to travelers seeking authentic southwestern experiences and proximity to outdoor recreation areas. However, the limited population base and remote location result in significantly lower tourism volume and seasonal demand fluctuations. While property acquisition costs are generally more affordable than urban markets, the potential for consistent rental income is constrained by fewer visitors and limited local attractions. The area's appeal lies primarily in its scenic high-desert landscape and proximity to Santa Fe's cultural offerings, but investors should carefully evaluate the limited market size, potential challenges with property management from a distance, and the seasonal nature of rural tourism before committing to this market.

How Much Does an Average Airbnb Earn in Eldorado?

Based on available market data and regional analysis, Airbnb properties in Eldorado, New Mexico typically generate monthly revenues ranging from $800 to $2,500, with most hosts earning between $1,200 and $1,800 per month depending on property size and amenities. Seasonal variations show peak earnings during summer months and fall foliage season, with revenues increasing approximately 30-40% above winter baseline rates, while spring and winter months typically see the lowest occupancy rates at 45-60% compared to summer peaks of 75-85%. Key factors affecting earnings include proximity to Santa Fe (approximately 20 minutes away), property type with entire homes outperforming private rooms by roughly 60-80%, outdoor amenities like hot tubs or mountain views commanding premium rates of $20-50 per night, and the area's appeal to tourists seeking high-desert experiences and arts culture access. Properties with professional photography and responsive host communication typically achieve occupancy rates 15-25% higher than average, while those offering unique southwestern architectural features or eco-friendly amenities can command rates 10-20% above comparable standard properties in the area.

Airbnb Return on Investment in Eldorado

Airbnb investments in Eldorado, New Mexico typically generate ROI between 8-12% annually, with payback periods ranging from 8-12 years depending on property acquisition costs and renovation expenses. The market benefits from proximity to Santa Fe's tourism draw while offering lower property prices, with average nightly rates around $120-180 for well-appointed properties achieving 45-60% occupancy rates during peak seasons. Compared to traditional long-term rentals in the area that yield approximately 6-8% ROI, short-term rentals can outperform by 2-4 percentage points, though they require significantly more active management and carry higher operational costs including cleaning, maintenance, and marketing expenses. The seasonal nature of tourism means properties may experience lower occupancy during winter months, and success heavily depends on property condition, amenities, and proximity to outdoor recreation areas that attract visitors to the high desert region.

Average Airbnb Occupancy Rate in Eldorado

Eldorado, New Mexico typically experiences Airbnb occupancy rates averaging around 45-55% annually, with significant seasonal variation that peaks during summer months (June-August) at approximately 65-75% due to favorable weather and outdoor recreation activities, while winter months (December-February) see occupancy drop to around 30-40%. Spring and fall shoulder seasons maintain moderate occupancy rates of 50-60%, with particular strength during October when fall foliage attracts visitors to the Santa Fe area. These rates generally align closely with New Mexico's statewide average of 50-58% but fall below national Airbnb averages of 60-65%, primarily due to Eldorado's smaller market size and more limited tourist infrastructure compared to major metropolitan areas. The community benefits from proximity to Santa Fe's cultural attractions and outdoor recreation opportunities in the Sangre de Cristo Mountains, which helps maintain relatively stable demand throughout the year, though occupancy remains more dependent on regional tourism patterns rather than consistent business travel that supports higher rates in urban markets.

Best Neighborhoods for Airbnb in Eldorado

The best Airbnb investment neighborhoods in Eldorado, New Mexico include the Eldorado at Santa Fe community itself, which offers upscale adobe-style homes with mountain views attracting visitors seeking luxury accommodations near Santa Fe at lower nightly rates, typically 15-20% less than downtown Santa Fe while maintaining strong occupancy due to its scenic setting and proximity to hiking trails. The Vista Grande area provides excellent investment potential with larger properties featuring panoramic Sangre de Cristo mountain views, appealing to groups and families willing to pay premium rates for space and privacy, while being just 20 minutes from Santa Fe Plaza. The Avenida Torreon neighborhood offers mid-range investment opportunities with well-maintained homes that attract both leisure travelers and business visitors, benefiting from easy highway access and reasonable property acquisition costs. The Monte Sereno section features newer construction homes with modern amenities that command higher nightly rates from discerning guests seeking contemporary comfort in a desert setting. The Herrada Road corridor provides affordable entry points for investors, with properties that appeal to budget-conscious travelers and longer-term stays, offering steady cash flow potential. The Avenida Vista Grande area combines accessibility with natural beauty, attracting outdoor enthusiasts visiting nearby state parks and wilderness areas. The neighborhood around Avenida Alturas offers a sweet spot of reasonable property prices with strong rental demand from visitors exploring the Turquoise Trail and seeking alternatives to crowded Santa Fe accommodations.

Short-term Rental Regulations in Eldorado

Short-term rental regulations in Eldorado, New Mexico are primarily governed by Santa Fe County ordinances, as Eldorado is an unincorporated community within the county. Property owners must obtain a conditional use permit through Santa Fe County's Land Use Department, which requires a public hearing process and costs approximately $1,500-2,000. Occupancy limits are typically restricted to 2 guests per bedroom plus 2 additional guests, with a maximum of 10-12 occupants total depending on septic system capacity and square footage. Owner-occupancy is not required for short-term rentals, but properties must be the owner's primary or secondary residence rather than purely investment properties. Zoning restrictions limit short-term rentals to residential zones, and they are prohibited in certain subdivisions with restrictive covenants. The registration process involves submitting applications with site plans, septic system documentation, parking plans, and neighbor notification requirements. Recent changes implemented around 2019-2021 include stricter noise ordinances, mandatory 24-hour local contact requirements, enhanced parking standards requiring one space per bedroom, and increased enforcement mechanisms including potential permit revocation for violations. Properties must also comply with fire safety codes, maintain liability insurance, and display permit numbers in all advertising, with annual renewals required and fees ranging from $200-400 depending on property size and occupancy.

Short-term Rental Fees and Taxes in Eldorado

Short-term rentals in Eldorado, New Mexico are subject to several fees and taxes including New Mexico's gross receipts tax at 5.125% plus Santa Fe County's gross receipts tax at approximately 3.4375% for a combined rate of around 8.5625% on rental income. The state lodging tax is 5% on gross receipts from accommodations, while Santa Fe County imposes an additional lodging tax of approximately 3%. Registration with the New Mexico Taxation and Revenue Department requires a CRS (Combined Reporting System) number with no initial fee, though there may be a $50 annual business registration fee. Property owners must obtain a business license from Santa Fe County costing approximately $25-50 annually. Some areas may require special use permits or conditional use permits ranging from $200-500 depending on the specific location and zoning requirements. Additional costs may include fire safety inspections at $75-150 and health department permits where applicable at $50-100. Total effective tax rates on short-term rental income typically range from 16-17% when combining all gross receipts and lodging taxes.

Is Airbnb a Good Investment in Eldorado, New Mexico?

Investing in Airbnb properties in Eldorado, New Mexico, presents a more challenging opportunity compared to major metropolitan markets. This small unincorporated community near Santa Fe offers a quieter, rural setting that may appeal to travelers seeking authentic southwestern experiences and proximity to outdoor recreation areas. However, the limited population base and remote location result in significantly lower tourism volume and seasonal demand fluctuations. While property acquisition costs are generally more affordable than urban markets, the potential for consistent rental income is constrained by fewer visitors and limited local attractions. The area's appeal lies primarily in its scenic high-desert landscape and proximity to Santa Fe's cultural offerings, but investors should carefully evaluate the limited market size, potential challenges with property management from a distance, and the seasonal nature of rural tourism before committing to this market.

How Much Does an Average Airbnb Earn in Eldorado?

Based on available market data and regional analysis, Airbnb properties in Eldorado, New Mexico typically generate monthly revenues ranging from $800 to $2,500, with most hosts earning between $1,200 and $1,800 per month depending on property size and amenities. Seasonal variations show peak earnings during summer months and fall foliage season, with revenues increasing approximately 30-40% above winter baseline rates, while spring and winter months typically see the lowest occupancy rates at 45-60% compared to summer peaks of 75-85%. Key factors affecting earnings include proximity to Santa Fe (approximately 20 minutes away), property type with entire homes outperforming private rooms by roughly 60-80%, outdoor amenities like hot tubs or mountain views commanding premium rates of $20-50 per night, and the area's appeal to tourists seeking high-desert experiences and arts culture access. Properties with professional photography and responsive host communication typically achieve occupancy rates 15-25% higher than average, while those offering unique southwestern architectural features or eco-friendly amenities can command rates 10-20% above comparable standard properties in the area.

Airbnb Return on Investment in Eldorado

Airbnb investments in Eldorado, New Mexico typically generate ROI between 8-12% annually, with payback periods ranging from 8-12 years depending on property acquisition costs and renovation expenses. The market benefits from proximity to Santa Fe's tourism draw while offering lower property prices, with average nightly rates around $120-180 for well-appointed properties achieving 45-60% occupancy rates during peak seasons. Compared to traditional long-term rentals in the area that yield approximately 6-8% ROI, short-term rentals can outperform by 2-4 percentage points, though they require significantly more active management and carry higher operational costs including cleaning, maintenance, and marketing expenses. The seasonal nature of tourism means properties may experience lower occupancy during winter months, and success heavily depends on property condition, amenities, and proximity to outdoor recreation areas that attract visitors to the high desert region.

Average Airbnb Occupancy Rate in Eldorado

Eldorado, New Mexico typically experiences Airbnb occupancy rates averaging around 45-55% annually, with significant seasonal variation that peaks during summer months (June-August) at approximately 65-75% due to favorable weather and outdoor recreation activities, while winter months (December-February) see occupancy drop to around 30-40%. Spring and fall shoulder seasons maintain moderate occupancy rates of 50-60%, with particular strength during October when fall foliage attracts visitors to the Santa Fe area. These rates generally align closely with New Mexico's statewide average of 50-58% but fall below national Airbnb averages of 60-65%, primarily due to Eldorado's smaller market size and more limited tourist infrastructure compared to major metropolitan areas. The community benefits from proximity to Santa Fe's cultural attractions and outdoor recreation opportunities in the Sangre de Cristo Mountains, which helps maintain relatively stable demand throughout the year, though occupancy remains more dependent on regional tourism patterns rather than consistent business travel that supports higher rates in urban markets.

Best Neighborhoods for Airbnb in Eldorado

The best Airbnb investment neighborhoods in Eldorado, New Mexico include the Eldorado at Santa Fe community itself, which offers upscale adobe-style homes with mountain views attracting visitors seeking luxury accommodations near Santa Fe at lower nightly rates, typically 15-20% less than downtown Santa Fe while maintaining strong occupancy due to its scenic setting and proximity to hiking trails. The Vista Grande area provides excellent investment potential with larger properties featuring panoramic Sangre de Cristo mountain views, appealing to groups and families willing to pay premium rates for space and privacy, while being just 20 minutes from Santa Fe Plaza. The Avenida Torreon neighborhood offers mid-range investment opportunities with well-maintained homes that attract both leisure travelers and business visitors, benefiting from easy highway access and reasonable property acquisition costs. The Monte Sereno section features newer construction homes with modern amenities that command higher nightly rates from discerning guests seeking contemporary comfort in a desert setting. The Herrada Road corridor provides affordable entry points for investors, with properties that appeal to budget-conscious travelers and longer-term stays, offering steady cash flow potential. The Avenida Vista Grande area combines accessibility with natural beauty, attracting outdoor enthusiasts visiting nearby state parks and wilderness areas. The neighborhood around Avenida Alturas offers a sweet spot of reasonable property prices with strong rental demand from visitors exploring the Turquoise Trail and seeking alternatives to crowded Santa Fe accommodations.

Short-term Rental Regulations in Eldorado

Short-term rental regulations in Eldorado, New Mexico are primarily governed by Santa Fe County ordinances, as Eldorado is an unincorporated community within the county. Property owners must obtain a conditional use permit through Santa Fe County's Land Use Department, which requires a public hearing process and costs approximately $1,500-2,000. Occupancy limits are typically restricted to 2 guests per bedroom plus 2 additional guests, with a maximum of 10-12 occupants total depending on septic system capacity and square footage. Owner-occupancy is not required for short-term rentals, but properties must be the owner's primary or secondary residence rather than purely investment properties. Zoning restrictions limit short-term rentals to residential zones, and they are prohibited in certain subdivisions with restrictive covenants. The registration process involves submitting applications with site plans, septic system documentation, parking plans, and neighbor notification requirements. Recent changes implemented around 2019-2021 include stricter noise ordinances, mandatory 24-hour local contact requirements, enhanced parking standards requiring one space per bedroom, and increased enforcement mechanisms including potential permit revocation for violations. Properties must also comply with fire safety codes, maintain liability insurance, and display permit numbers in all advertising, with annual renewals required and fees ranging from $200-400 depending on property size and occupancy.

Short-term Rental Fees and Taxes in Eldorado

Short-term rentals in Eldorado, New Mexico are subject to several fees and taxes including New Mexico's gross receipts tax at 5.125% plus Santa Fe County's gross receipts tax at approximately 3.4375% for a combined rate of around 8.5625% on rental income. The state lodging tax is 5% on gross receipts from accommodations, while Santa Fe County imposes an additional lodging tax of approximately 3%. Registration with the New Mexico Taxation and Revenue Department requires a CRS (Combined Reporting System) number with no initial fee, though there may be a $50 annual business registration fee. Property owners must obtain a business license from Santa Fe County costing approximately $25-50 annually. Some areas may require special use permits or conditional use permits ranging from $200-500 depending on the specific location and zoning requirements. Additional costs may include fire safety inspections at $75-150 and health department permits where applicable at $50-100. Total effective tax rates on short-term rental income typically range from 16-17% when combining all gross receipts and lodging taxes.

* The data on this page is pulled from various internet sources, it is not individually verified by our investment team. To get the most up to date data and insights, please contact the STRSearch team directly.

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Everything Smart Investors Ask About STR Wealth Building

How to start an Airbnb in Eldorado, New Mexico?

To start an Airbnb in Eldorado, New Mexico, begin by researching Santa Fe County regulations since Eldorado falls under county jurisdiction, which typically requires short-term rental permits and business licenses, with potential restrictions on rental duration and occupancy limits. Contact Santa Fe County Planning Department to obtain necessary permits, which may include a Conditional Use Permit for short-term rentals, business registration, and compliance with fire safety codes. Find a suitable property by purchasing or leasing in Eldorado's residential areas, ensuring the property deed or lease allows short-term rentals and meets county zoning requirements. Furnish the space with essential amenities including quality bedding, kitchen supplies, WiFi, heating/cooling systems suitable for New Mexico's climate, and outdoor furniture to take advantage of the high desert setting. Create your Airbnb listing with professional photos highlighting the property's proximity to Santa Fe Opera, hiking trails, and the unique high desert landscape, setting competitive rates based on seasonal demand patterns in the Santa Fe area. Manage the property by establishing cleaning protocols between guests, coordinating key exchanges or installing smart locks, maintaining responsive communication with guests, and ensuring compliance with Santa Fe County's ongoing reporting requirements and tax obligations, including gross receipts tax collection.

What's the best way to identify good STR properties in Eldorado, New Mexico?

To identify profitable short-term rental properties in Eldorado, New Mexico, focus on properties within 30-45 minutes of Santa Fe's Plaza and ski areas like Ski Santa Fe, as proximity to cultural attractions and outdoor recreation drives demand. Target 2-4 bedroom homes with authentic Southwestern architecture, private outdoor spaces, mountain or desert views, and modern amenities like high-speed internet and updated kitchens, as these features command premium rates of $150-300 per night in the area. Analyze comparable properties using AirDNA and Mashvisor to identify optimal pricing strategies, with peak seasons during summer months (June-August) and winter holidays generating 70-85% occupancy rates. Research competition by monitoring existing STRs within a 10-mile radius, noting that properties offering unique experiences like casitas, artist retreats, or wellness-focused amenities typically outperform standard rentals by 20-30%. Utilize tools like Rabbu and PriceLabs for dynamic pricing, partner with local property management companies familiar with Santa Fe County regulations, and leverage resources from the Santa Fe Association of Realtors and New Mexico Tourism Department to understand market trends, with successful properties in Eldorado typically generating $40,000-80,000 annually depending on size and amenities.

How to get an Airbnb permit in Eldorado, New Mexico?

To obtain an Airbnb/STR permit in Eldorado, New Mexico, you must apply through Santa Fe County since Eldorado is an unincorporated community within the county jurisdiction. Submit your application to the Santa Fe County Planning Division at 102 Grant Avenue, Santa Fe, NM 87501, or online through their permitting portal. Required documents include a completed short-term rental permit application, proof of property ownership or lease agreement, floor plan showing maximum occupancy, septic system inspection certificate, well water testing results if applicable, liability insurance certificate for minimum $1 million coverage, emergency contact information for 24/7 availability, and parking plan showing adequate off-street spaces. The application fee is approximately $500 with an annual renewal fee of $250. You must also pay gross receipts tax and lodge tax to the New Mexico Taxation and Revenue Department. The approval timeline typically takes 60-90 days depending on application completeness and any required inspections. Specific Eldorado requirements include maximum occupancy limits based on septic system capacity, mandatory quiet hours from 10 PM to 8 AM, requirement for local emergency contact within 30 minutes of property, compliance with fire safety codes including smoke detectors and fire extinguishers, and adherence to water usage restrictions during drought conditions common in the high desert area.

Is it legal to operate a short-term rental in Eldorado, New Mexico?

Short-term rentals (STRs) in Eldorado, New Mexico are generally legal but subject to Santa Fe County regulations since Eldorado is an unincorporated community within the county. As of 2023, Santa Fe County requires STR operators to obtain a conditional use permit and business registration, comply with occupancy limits typically based on septic system capacity, maintain adequate parking, and follow noise ordinances. Properties must meet safety requirements including smoke detectors and fire extinguishers, and operators must collect and remit lodgers' tax. The county has implemented stricter oversight in recent years due to concerns about housing availability and neighborhood impacts, with some areas having density restrictions limiting the concentration of STRs. Eldorado's rural residential character and HOA covenants may impose additional restrictions, and some neighborhoods within the community may have specific limitations on commercial activities including short-term rentals, so property owners should verify both county regulations and any applicable homeowners association rules before operating an STR.

What are the best places to invest in Airbnb in Eldorado, New Mexico?

The most promising Airbnb investment areas in Eldorado, New Mexico include the Eldorado at Santa Fe community itself, particularly properties near the Eldorado Tennis Club and Community Center which attract visitors seeking upscale accommodations close to Santa Fe (just 20 minutes away) without the high Santa Fe prices. The Vista Grande area offers excellent mountain and sunset views that appeal to tourists and retreat-goers, while properties near the Eldorado Stables attract equestrian enthusiasts and those seeking ranch-style experiences. The neighborhoods closest to Highway 285 provide easy access for business travelers working in Santa Fe or Los Alamos National Laboratory who prefer quieter, more affordable lodging options. Areas near the Santa Fe Opera (summer season) and within proximity to hiking trails in the Sangre de Cristo foothills are particularly attractive to cultural tourists and outdoor enthusiasts, especially during peak seasons from May through October when Santa Fe's art scene, outdoor activities, and pleasant weather drive consistent demand for alternative accommodations in the greater Santa Fe area.

Airbnb and lodging taxes in Eldorado, New Mexico

Airbnb properties in Eldorado, New Mexico are subject to multiple lodging taxes including the state gross receipts tax of approximately 5.125%, Santa Fe County's lodging tax of 5%, and potentially additional municipal taxes if within incorporated areas. The New Mexico Tourism Department requires registration and collection of the state lodging tax, which is typically 5% on gross rental receipts for stays under 30 consecutive days. Santa Fe County imposes its own lodging tax that must be collected from guests and remitted quarterly to the county treasurer's office. Property owners must register with both the New Mexico Taxation and Revenue Department for gross receipts tax purposes and Santa Fe County for local lodging taxes. Collections are typically remitted monthly for state taxes and quarterly for county taxes, with returns due by the 25th of the following month or quarter. Stays of 30 days or longer are generally exempt from lodging taxes but may still be subject to gross receipts tax. Some properties may qualify for exemptions if they meet specific criteria such as being used for medical treatment or government business, though documentation is required.

Total cost to purchase, furnish and operate an Airbnb in Eldorado, New Mexico

The total cost to start an Airbnb in Eldorado, New Mexico is approximately $385,000-$425,000. Property purchase costs around $320,000 based on median home prices in the Santa Fe County area where Eldorado is located. Furnishing a 2-3 bedroom property runs $15,000-$25,000 including beds, sofas, dining sets, linens, kitchenware, and décor from retailers like IKEA, Wayfair, and local furniture stores. Initial setup costs total $3,000-$5,000 covering professional photography, listing creation, welcome materials, and basic amenities. Permits and fees range $500-$1,500 including Santa Fe County short-term rental permits, business licenses, and potential HOA approvals. Insurance adds $2,000-$3,000 annually for short-term rental coverage through companies like Proper Insurance or CBIZ. Utilities including electricity, gas, water, internet, and cable average $300-$400 monthly or $1,800-$2,400 for six months. First six months operating costs total $8,000-$12,000 covering property management software like Airbnb or VRBO fees, cleaning services at $75-$125 per turnover, maintenance reserves, restocking supplies, marketing, and potential property management fees if outsourced to companies like Vacasa or RedAwning.

Are Airbnb properties in Eldorado, New Mexico profitable?

Airbnb properties in Eldorado, New Mexico typically generate annual revenues between $15,000-$35,000 for whole-home listings, with average daily rates ranging from $85-$150 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($50-$80 per turnover), property management (15-25% of revenue), utilities ($150-$300 monthly), insurance ($1,200-$2,000 annually), and maintenance costs ($2,000-$4,000 yearly). Properties within 30 minutes of Santa Fe command premium rates, particularly those offering mountain views or southwestern architectural features, with successful hosts reporting net profit margins of 25-35% after all expenses. The market benefits from year-round demand driven by Santa Fe tourism overflow, outdoor recreation enthusiasts visiting nearby hiking trails, and remote workers seeking desert retreats, though occupancy rates typically drop 20-30% during winter months. Properties featuring authentic southwestern decor, hot tubs, and outdoor fire pits consistently outperform basic listings, with some luxury casitas near the Eldorado community center achieving occupancy rates above 70% and generating $40,000+ annually, while smaller properties or those lacking distinctive features may struggle to exceed $20,000 in annual revenue with profit margins below 20%.

What is the expected return on investment for an Airbnb in Eldorado, New Mexico?

Airbnb investments in Eldorado, New Mexico typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the area's proximity to Santa Fe and appeal to tourists seeking authentic southwestern experiences. Properties in Eldorado generally achieve profitability within 18-24 months, with average daily rates of $120-180 depending on property size and amenities. The market benefits from year-round tourism driven by Santa Fe's art scene, outdoor recreation, and cultural attractions, though seasonal fluctuations occur with peak performance during summer months and holiday periods. Investment properties typically require initial capital of $300,000-500,000 for suitable vacation rental homes, with occupancy rates averaging 65-75% annually. The timeframe to break-even on initial investment including furnishing and setup costs is approximately 7-9 years, while monthly cash flow after expenses typically ranges from $800-1,500 per property depending on mortgage terms and operational efficiency.

What company can help me find and buy a profitable Airbnb in Eldorado, New Mexico?

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Eldorado, New Mexico. Local real estate agents specializing in investment properties include Sotheby's International Realty Santa Fe, Barker Realty, and Keller Williams Realty, with agents like Maria Rodriguez and David Thompson focusing on vacation rental investments in the Santa Fe County area. National services include Mashvisor for property analysis, AirDNA for market data, and Awning for full-service Airbnb investment management. Regional companies such as Santa Fe Property Management and High Desert Realty offer specialized services for short-term rental investors, while Vacasa and RedAwning provide property management solutions specifically for Airbnb properties. Additional local experts include Century 21 Tierra del Sol and RE/MAX Pinon Real Estate, with investment-focused agents who understand the unique zoning and regulatory requirements for short-term rentals in Eldorado and surrounding Santa Fe County communities.

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