Rental property ideas

[Ammar Muhammad]

Hi Folks,

I have a rental property in Newark DE (zip code 19702). It is a townhouse that I bought for 215K and I am renting for $1800 per month (I know it is less than 1% but still cashflow positive and I am ok with that considering this is my first rental). I am planning on buying another rental property this year but my max budget is 150K. This basically means that I can no longer do what I did before i.e buy a similar townhouse as those are selling for about 240K now a days. Before I start looking out of state like Ohio etc, I wanted to see if there are areas nearby that I can invest in and still get rent that meets 1% rule. I am open to areas around Delaware like PA that is north of Claymont. I consider the townhouse I currently rent to be in B minus area and am hoping to purchase the next property in B maybe C areas. 

Any suggestions?

[Eric Armstrong]

@Ammar Muhammad 1% rule gets tight in northern DE once you get to around 130-140k. There are fewer and fewer properties these days. You can find a couple in the city limits, but nearly impossible outside. New Castle(19720) and Elsmere(19805) are options.