At about 16:45 mountain time, a Cessna T210N lost engine power shortly after takeoff and was damaged during a forced landing at Colorado City. The four occupants suffered minor injuries. The pilot, who is also a maintenance technician, had just completed an annual inspection and installed an overhauled engine in the airplane. The pilot said he had flown the airplane three times for a total of about 2.5 hours. During takeoff and initial climb, the engine lost power at 400 to 500 feet agl. The pilot performed a 180-degree turn back to the airport but was unable to reach the runway and collided with rocky terrain. The pilot said he visually checked both fuel tanks during the preflight, observing about 1 inch in the left tank and about 1.5 in the right. After the accident the fuel selector was on the left tank and the left tank was empty.