513 Canter Rd

Ardentown, DE 19810

$123,000B-

2 bd · 2.0 ba · 896 sqft · Built 2024 · Other · Coming Soon · 14 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,059/mo
• Mortgage (P&I): −$645
• Tax + insurance: −$205
• HOA: −$0
• Vac / Maint / Mgmt: −$432
• Net cashflow: $777/mo
• Annual: $9,323/yr
• Cap rate: 13.87%
• Cash-on-cash: 27.07%
• DSCR: 2.20
• 1% rule: 1.67%
• Cash to close: $34,440

Investor read

• This is a 2-bed/2.0-bath other listed at $123k.
• At list price, monthly cash flow is $777 ($9k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $123k).
• Only 14 days on market — expect competitive offers; lowballing is unlikely to land.
• Local home prices are declining (-3.0%/yr); year-one equity from $850 of loan paydown is wiped out by about $4k of value loss. Plan a longer hold.
• Location reads 65/100 on livability (#44 in DE) — a middle-class / working-renter tenant base. Strengths: crime B+, housing B; Watch: cost of living C-, amenities F, commute F.
• Brandywine School District (suburban): math 28% / reading 40% proficiency, ranked #11 of 26 in DE (top 42%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Lancashire Elementary School (math 27% / reading 37%, grade F, #44 of 105 statewide, top 46%, 514 students, 0% FRL); Springer Middle School (math 24% / reading 40%, grade F, #15 of 36 statewide, top 40%, 797 students, 0% FRL); Concord High School (math 32% / reading 57%, grade F, #8 of 40 statewide, top 21%, 1,014 students, 0% FRL) — zoned schools average 0% FRL vs 38% district-wide (38 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: Rents rising fast (+4.3%/yr); 66 active listings in the ZIP; 2 comparable units currently listed for rent nearby; high-income renter base; 1,367 units permitted in New Castle County in 2024 (201 in 5+ unit buildings).
• New Castle County population projected at +9% by 2050 — modest demand growth; plan on rents tracking national, not racing it.
• At projected returns (-3.0% appreciation + 4.3% rent growth), your $34k cash investment doubles in ~5 years — after that, you're playing with house money.
• Cap rate 13.9% vs local median 3.2% in Ardentown — 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

• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are B-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
• 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.
• What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
• How much new for-sale + rental construction is in the pipeline within 1–3 miles? Heavy new supply typically softens prices + rents 12–24 months out; constrained supply supports both.