Catalina Plan

Ocean View, DE 19945

$830,400F

4 bd · 3.5 ba · 4,618 sqft · Built — · SingleFamily · Active · 266 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,450/mo
• Mortgage (P&I): −$5,283
• Tax + insurance: −$1,734
• HOA: −$0
• Vac / Maint / Mgmt: −$934
• Net cashflow: $-3,502/mo
• Annual: $-42,019/yr
• Cap rate: 2.19%
• Cash-on-cash: -14.66%
• DSCR: 0.35
• 1% rule: 0.44%
• Cash to close: $282,058

Investor read

• This is a 4-bed/3.5-bath single-family listed at $830k.
• At list price, monthly cash flow is $-4k ($-42k/yr) — negative.
• To cash-flow at today's rent, offer at most $501k (39.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $445k (46.4% below list).
• It's been on market 266 days — a 12% lower offer ($731k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $445k (46.4% below list) — sets the bar for 1% rule.
• In year one you build about $108k of equity ($7k loan paydown + $101k appreciation (10.0% local appreciation)).
• Location reads 69/100 on livability (#27 in DE) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, schools A; Watch: amenities F, commute F, cost of living F.
• Indian River School District (rural): math 25% / reading 41% proficiency, ranked #14 of 26 in DE (top 54%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: flood insurance adds $56/mo.
• Market conditions: 281 active listings in the ZIP; 1 comparable units currently listed for rent nearby; 4,354 units permitted in Sussex County in 2024 (344 in 5+ unit buildings).
• Sussex County population projected at +25% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• By year 2, paydown + projected appreciation supports a ~$173k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Climate carrying-cost: severe flood risk; severe wind risk, 80% 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.

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 266 days. Have you received any prior offers? Is the seller open to a 46% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• 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 A-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?
• 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.