naco is a word most commonly used in Mexico, but some Mexican Americans use it as well. It describes a person who looks poor or skanky. In Monterrey you can see nacos wearing baggy pants, playing guacharacas/tambores and jamming out to cumbia colombiana
ese pinche naco vive alla por el cerro y se cree bien cholo.
that fuckin' naco lives by the hills and he thinks he a real gangsta