2022 Delaware Market Analysis for buy and hold rental properties

[Charlene Isoh]

Hi My Fellow Biggerpocketers, 

I am temporarily staying in Delaware and looking to see if there is any opportunity in this crazy market to buy and hold either a sfh or duplex strictly for a cashflow play in this state (if the numbers make sense) and stay within a budget of around 110k (max note I would be using traditional lending). I would love to understand if the current market with my criteria makes sense to begin building a team here and if so what areas to look out for that can provide stability and good cashflow. All advice is great advice so please share away and thanks in advance.

Regards,

Char

[Ronald Stephenson]

If this is your first time staying in Delaware, Welcome!

I am currently back in the analysis phase of Wilmington, DE. As I see this market with a cap of $110k, you can acquire a property with tenants already in place. 

* There, unfortunately, are auctions occurring at an expedited rate as well (foreclosures). 

* If you want to get into an Airbnb (STR) business model out here, the average is $124/night; primary locations are Hill Top, Trolley Square, and Mid-Town.

The properties that I have seen come onto the market for $75k to $110k have been rapidly selling and buying unless it has two main issues, tenants in place with only photos, ex. These have lasted on the market for roughly longer (30+ days) and commonly have some foundational damage req

Specific areas: the closer to the riverfront you go, the more crime levels will decrease, and the sale price will increase. There are some hidden gems within Browntown and the Claymont area by the train station.

Last note: The city "recently" increased the funding of their land bank this past FY by $1,000,000 and hired a consultant. The city wants to acquire more homeowners. 

I hope this assists in any way, happy investing.