514 Tack Ln

Midland, NC 28107

$475,000D

3 bd · 2.5 ba · 2,482 sqft · Built 2017 · SingleFamily · Active · 78 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $3,750/mo
• Mortgage (P&I): −$2,491
• Tax + insurance: −$450
• HOA: −$56
• Vac / Maint / Mgmt: −$788
• Net cashflow: $-35/mo
• Annual: $-419/yr
• Cap rate: 6.20%
• Cash-on-cash: -0.32%
• DSCR: 0.99
• 1% rule: 0.79%
• Cash to close: $133,000

Investor read

• This is a 3-bed/2.5-bath single-family listed at $475k.
• At list price, monthly cash flow is $-35 ($-419/yr) — negative.
• To cash-flow at today's rent, offer at most $469k (1.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $375k (21.1% below list).
• It's been on market 78 days — a 6% lower offer ($446k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $375k (21.1% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $3k of loan paydown is wiped out by about $14k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#157 in NC) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, housing A+; Watch: amenities F, commute F, health & safety F.
• Cabarrus County Schools (rural): math 54% / reading 55% proficiency, ranked #44 of 178 in NC (top 25%) — acceptable for families but not a draw, mixed tenant base, ~2y average lease.
• Zoned schools: Bethel Elementary (math 46% / reading 48%, grade D-, #497 of 1,410 statewide, top 38%, 609 students, 48% FRL); Hickory Ridge Middle (math 73% / reading 68%, grade A, #17 of 475 statewide, top 4%, 935 students, 17% FRL); Hickory Ridge High (math 70% / reading 74%, grade B+, #107 of 535 statewide, top 21%, 1,720 students, 19% FRL).
• Market conditions: 70 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 2,485 units permitted in Cabarrus County in 2024 (677 in 5+ unit buildings).
• Cabarrus County population projected at +44% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• Climate carrying-cost: moderate wind risk, 25% chance of damaging wind over 30y; extreme-heat days projected 7→18/yr by 2055 (HVAC capex compounding) — expect insurance premiums to compound above CPI over the hold.
• Cap rate 6.2% vs local median 3.1% in Midland — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Questions for listing agent

• What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
• It's been on market 78 days. Have you received any prior offers? Is the seller open to a 21% concession, seller financing, or rate buy-down credit?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
• What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.