Finding treasures in tax liens

✍🏾 Hello neighbor,

Last week, I met a guy who bought a tax-delinquent duplex off-market — no auction, no bidding war — just a cold call and a clear offer. He’s now cash-flowing $700/month, and the place is already worth 40K more.

That conversation reminded me that the best plays are rarely loud. They’re hiding in quiet neighborhoods like Eastland, in boring businesses like laundromats, or in deals most people overlook because they’re too busy falling in love with finishes.

This week’s edition is about seeing what others miss and acting before they do.

Let’s get into it.

THE PLAYBOOK

The Tax Lien Treasure Hunt

There’s a hidden market of distressed properties that never make it to Zillow. I’m talking about tax-delinquent properties. When homeowners fall behind on property taxes, counties file public notices. Most people wait for these to hit the auction. Smart investors strike before the gavel drops.

• Start with your county’s tax assessor or clerk of courts website. Search for lists of tax-delinquent parcels; they’re public info.

• Contact the owner directly before the property goes to auction. Many are open to selling, just to avoid more penalties or legal mess.

• Always check for other liens (mortgages, code violations) before making an offer.

You’re not hunting for deals, you’re solving a problem before the government does. When you do that, you can sometimes land a property way below market without the auction day chaos.

MISTAKES TO AVOID

Buying with Your Heart, Not the Math

It’s not your dream home, it’s your income stream. Treat it that way. Too many first-time investors fall for a house like they’re moving in.

This is one of the most expensive rookie mistakes: letting emotions cloud the math. New investors often get hooked on how a property looks, not how it performs. The kitchen is cute. The backyard is huge. It feels right.

The reality is, a beautiful property that breaks even — or worse, loses money — is just a liability in disguise.

Here’s how to protect yourself:

Always start with the numbers. Before you set foot in the house, run a basic deal analysis:

• What’s the expected rent? Use tools like Rentometer or Zillow Rentals to get market comps.

• What’s the 1% rule? A quick rule of thumb, monthly rent should be at least 1% of purchase price. A $250K property should rent for $2,500/month — or be deeply discounted.

• What’s your cash flow after mortgage, taxes, insurance, 10% vacancy, and 10% maintenance?

Then check your emotions. If the math isn’t working but you’re still trying to justify the deal, step back. You’re in buyer brain, not investor brain.

In most markets, a good rental should cash flow at least $150–$300/month per door, even after expenses. Anything less is cutting it thin, unless you’re banking on major appreciation, which is a gamble.

Bottom line, cash flow > walk-in closet. Don’t chase pretty, chase performance.

DEAL OF THE WEEK

📍 2607 & 2609 Celia Ave, Charlotte, NC 28216
Listed at $500,000 | 1,525 sqft | 6 Bed, 2 Bath

Why it’s a great deal

1. Fully Leased = Immediate Cash Flow

• Both units already have tenants in place (one lease through August 2025, the other through March 2026), meaning you’re walking into guaranteed income from Day 1.

• This removes vacancy risk in the short term and provides predictable returns while you plan your next move.

2. Location: 28216 Zip Code in Charlotte

• 28216 is one of Charlotte’s growing areas, benefiting from:

  • Urban spillover from Uptown.

  • Infrastructure improvements.

  • Increased investor attention.

• Located minutes from Uptown and I-85, tenants (or future short-term guests) have easy access to:

  • Employment hubs.

  • Public transit.

  • Schools, parks, and retail.

• This proximity fuels high demand, supports rental appreciation, and boosts future resale value.

MARKET WHISPERER

Eastland’s Quiet Comeback

Charlotte’s Eastland neighborhood is quietly making a major comeback. Are you watching closely enough?

For years, Eastland was an overlooked corner of Charlotte. After the iconic Eastland Mall was torn down in 2013, the area drifted. Investors ignored it, locals dismissed it.

Now in 2025, Eastland is staging one of Charlotte’s most interesting comeback stories, and it’s not just hype. The $175M Eastland Yards redevelopment project is in full swing:

• Over 400 new housing units are planned — a mix of townhomes, apartments, and affordable options.

• 25 acres of green space and community parks are being added.

• A new creative arts campus and potential film studio space are in the mix.

• Retail and restaurants designed to anchor the community, not just bring in outsiders.

What does that mean for investors?

• Property values are rising, but Eastland is still 20–30% cheaper per square foot than nearby neighborhoods like Plaza Midwood and Commonwealth. That’s room to run.

• Rents are steadily increasing as new tenants move in, and there's still upside as more infrastructure rolls out.

• More importantly, Eastland is no longer a “wait-and-see” neighborhood; it’s a “get in before everyone else does” play.

If you’re looking for cash flow + appreciation, don’t sleep on Eastland.

EQUITY MATCHUP

Rental Property vs. Laundromat. Which Wins in 5 Years?

Real estate’s reliable, but what if a local cash business beats it on returns?

Let’s stack up two common wealth plays:

• A $250K rental property in Charlotte

• A $250K laundromat acquisition in a growing zip code

Rental Property Projection (5 Years):

• Down payment: $50K

• Monthly rent: $2,100

• Mortgage, taxes, expenses: ~$1,600/month

• Net cash flow: ~$500/month = $6,000/year

• After 5 years:

  • ~$30K cash flow

  • ~$30K–$50K appreciation (avg. 4–6%/yr)

  • ~$10K principal paydown

  • Total return: $70K–$90K+

Laundromat Projection (5 Years):

• Purchase price: $250K for a stabilized location.

• Net profit: $4,000/month (industry average).

• Minimal staff, low inventory.

• Cash flow: ~$48K/year

• After 5 years:

  • $240K+ in cash flow alone.

  • Business resale value may rise.

  • Bonus: You can automate or outsource operations.

So what’s the better play?

• Real estate gives you long-term appreciation, tax perks, and passive income.

• Laundromats offer cash-on-cash returns that are hard to beat — often 20%–30% annually, with fewer surprise expenses than rental units.

If you’re chasing monthly cash flow, a boring local business might quietly outpace that shiny duplex.

Want to see local biz listings in Charlotte? Check BizBuySell Charlotte, you’ll be shocked at what’s sitting there under the radar.

Until next week,

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