Master the 5-5-5 deal drill now

PORCH TALK

Hello neighbors,

Every now and then, you get a week where the writing’s on the wall — bold, bright, and impossible to ignore. This is that week.

Charlotte’s market is moving. Prices are creeping. Institutions are circling. And if you're still thinking about getting ready, you might already be late. But don’t worry, this week’s edition is all about keeping you ahead of that curve.

We’ll walk through the 5-5-5 Deal Drill to help you size up opportunities like a pro, break down a smart-money strategy for busy folks (like that mom juggling life at $70K/year), and spotlight why out-of-state owners might be your easiest yes.

Oh, and I’ve got a spicy prediction for 2025. One you’ll either thank me for… or regret ignoring.

Let’s get into it.

THE PLAYBOOK

Mastering the 5-5-5 Deal Drill

Let’s talk about the 5-5-5 Deal Drill, the quick-and-dirty way to sniff out rental deals that actually make sense.

It goes like this:

• $5K or less in rehab.

• Cash flows $500/month.

• At least 5% cash-on-cash return.

That’s your triple threat. If a deal doesn't meet all three, it doesn’t make the cut.

Here's why this rule slaps:

1. Quick Rehab ($5K or less): You’re not flipping a zombie house. You're making it rent-ready, fast. Think paint, flooring, minor fixes — not gutting kitchens.

2. Cash Flow ($500/mo): It’s 2025. The cost of eggs is wild, and you deserve a buffer. This ain’t charity.

3. Return (5%+ CoC): Your money needs to hustle. If you’re not earning at least 5% on your cash invested, the deal needs a second look, or a delete.

Is this strategy perfect? Nope. But it’s a filter, not a final answer. It gets you out of analysis paralysis and into making moves.

Next time you’re drowning in Zillow tabs and LoopNet listings, ask yourself:

“Does this hit the 5-5-5?”

If it doesn’t, on to the next one. Time is money, and bad deals are sneaky little thieves.

MONEY MOVE

What If I Were a Busy Mom Making $70K/Year (With Zero Time for Tenants)

Let’s be honest. Between work, errands, and keeping the family fed and functioning, the idea of getting a midnight call because “the AC is making a weird noise” is... a hard pass.

But guess what? You can still build wealth through real estate here in Charlotte without ever dealing with a single clogged toilet.

Here’s the play:

Step 1: Buy a Turnkey Rental in the Right Pocket

Start looking at up-and-coming spots like West Charlotte, University City, or even parts of Gastonia and Concord. You’re aiming for properties under $250K that are already rehabbed, already rented, and preferably managed. No DIY here, you’re not trying to add “landlord” to your LinkedIn.

Step 2: Partner with a Charlotte Property Manager

Charlotte is full of PMs who specialize in handling rentals for part-time or out-of-state owners. They'll screen tenants, collect rent, handle maintenance, and you just cash the check. Yeah, they'll take a slice (8–10%), but trust me, it's worth every penny.

Step 3: Buy for Cash Flow, Not Just Appreciation

Charlotte’s appreciation has been wild, but don’t get caught up in the hype. Focus on strong rent-to-price ratios — think $1,500+ rents on $200K homes. The consistent cash flow is what gives you freedom, not a Zillow Zestimate.

Step 4: Stack Slowly, Smartly

Once that first deal is running smoothly, start planning for the next. Maybe one a year. Before you know it, you've got a mini real estate portfolio, all without burning yourself out.

THE DEED WHISPERER

If the Seller Lives Out of State… You’re Already in Control

Here’s a little local game for Charlotte investors. When you see a property where the owner lives out of state, that’s not just a detail — that’s leverage.

Think about it:

• They’re not driving by the house.

• They’re not emotionally tied to the neighborhood.

• They’re not plugged into how hot the Charlotte market actually is.

And if that house is sitting in an older neighborhood — think Hidden Valley, West Blvd, or parts of East Charlotte — chances are they haven’t been keeping up with rising comps or the roof that’s begging for retirement.

So what does that mean for you?

• They’re detached.

• They’re likely tired.

• They’re probably open to a real conversation.

Use tools like PropStream, REI Sift, or even county GIS records to filter for owners with mailing addresses outside North Carolina. Once you find them, reach out — a friendly letter, a phone call, or even a well-timed postcard.

Sometimes, the best deals don’t come from motivated sellers. They come from disconnected ones. Knowing who’s out-of-state is like knowing where the gold is buried.

HOT TAKE

2025 is Arguably the Last Year Real Estate Will Be Affordable for First-Time Investors in Charlotte

Yeah, I said it. And I stand on it like it’s a newly poured foundation in West Charlotte.

If you’re a first-time investor waiting for the right time to buy in Charlotte, 2025 is that time. Because after this? The door’s not just closing, it’s about to be boarded up by hedge funds and rent-optimized algorithms.

Institutional Buyers Are Already Here

BlackRock. Invitation Homes. Hedge funds you’ve never heard of but whose money talks louder than yours ever will. They're targeting markets like Charlotte, fast-growing, still-affordable, and full of cash flow potential. Guess who they’re buying from? The mom-and-pop seller you were too slow to call.

Price Creep is Getting Real

You’ve seen it. That $240K Westside duplex from 2021 is now $310K. The $180K fixer-upper in Hidden Valley? Now pushing $250K as-is. Charlotte’s population keeps growing, inventory stays tight, and builders aren’t catching up fast enough. Add in interest rate drops, and boom, demand explosion incoming.

The Window is Closing

By 2026, entry-level investors will be boxed out or competing against all-cash buyers who don’t flinch at a 6-figure rehab. You can either buy now and ride the wave… Or wait and pay double to get on the board.

Call it fear-mongering if you want, but it’s really just market foresight. 2025 is the year. After that, you’re either renting your dreams from Wall Street or selling deals to them.

Don’t get priced out of your own city.

DEAL RADAR

130 Spring St SW
$579,900 | 4BD 4BA | 3,806 SF

Turn-key, fully rented quadplex in prime downtown Concord location—just steps from dining, shopping, and entertainment. Each 1-bed/1-bath unit is in great condition with stable rents, updated systems, and individual washer hookups. Recent upgrades include a new roof (2014), water heaters (2015), and newer furnaces and A/C units in select units.

443/445 Faith Dr SW
$549,900 | 6BD — BA | 2,576 SF

Two identical, newly built townhomes are being sold together as a package. Each features an open floor plan, modern kitchen with granite countertops and stainless appliances, 3 bedrooms including a master suite, and no HOA—making this a low-maintenance, high-potential investment just minutes from downtown Concord.

WEEKEND EXPERIMENT

My Weekend 5-5-5 Experiment

This weekend, I’m running a little experiment, and you’re welcome to join me.

➜ I’m picking 5 property listings in Charlotte.
➜ I’ll spend no more than 5 minutes analyzing each one.
➜ Then I’ll jot down my top 5 takeaways.

The goal? To sharpen my instincts. I want to see what I pick up on when I don’t overanalyze — just a quick read, a gut check, and move on.

I’m curious:

• What patterns start to show up?

• What red flags pop instantly?

• What makes me pause and say, “Hmm… this could be something”?

If you're down to try it too, tag along. No pressure, just a fun way to train the eye and compare notes.

And if anything interesting jumps out at you, shoot it my way. I’d love to see what you spot.

Until next week,

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