The highway (state road NM-244) between Cloudcroft and Mescalero (US-70) is only two lanes, very curvy, and one of the most dangerous in the area. Especially in winter. But even in summer it has a very high accident/loss-of-life rate compared to other similar roads in the state.
MUCH MUCH better to live in either Tularosa/Bent area or in Ruidoso/Ruidoso Downs. Commute from either direction on US-70 is a 4-lane divided highway. Less ice/snow on the Mescalero/Tularosa leg than going over the Apache Summit on the east leg each day. Even then the snow is only a couple of days before totally melting off the highway. And US-70 gets much quicker/better attention in winter than does NM-244.
I don't know what the chances are for rentals, but there are some nice properties in a very spectacular setting in the Bent area between Tularosa and Mescalero. Be wary of buying houses in Otero county due to the lack of zoning, building codes, and very shoddy construction of even the newest site-built houses. Some have been condemned by the state inspector after completion even before they could be sold.
As for living on the reservation, I don't know what could be worked out with the BIA in that regard, but most of the people I know who work at the assisted living center on the rez live off the rez.