37238 Sugar Hl · Ocean City, MD 19975

$182,500

3 bd · 2.0 ba · 1,248 sqft · Manufactured public records · 336 Days on market

Built 1992 Fair condition 3,484 sqft lot $146/sqft · 18% above area Est $185k · at est. $2/mo HOA ↓ 4% since listing

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Why this score? — see what drove the C+ grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• Cash flow +26.5/30.0
• DSCR +9.1/10.0
• ARV discount +8.1/15.0
• 1% rule +7.1/10.0
• Livability +3.7/5.0
• Schools +2.9/10.0
• Rent growth +2.5/5.0
• Condition / age +2.2/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Welcome to 37238 Sugar Hill Way, a large 4 Bedroom 2 Bath home only about 3 miles from the beach! This mostly furnished home has 2 living areas, a large kitchen/dining area, a large primary bedroom with a full bath and 3 other good sized bedrooms. Recent upgrades include new A/C and water heater in 2022. There is also an addition with a 3rd shower. Outside there is an oversized shed with electric giving plenty of room for all of your beach toys. There is also a boat ramp with easy access to the bay for a small annual fee. This home is close to the beach, bay, shopping, restaurants, golf and Freemen Arts Pavilion, which hosts national acts during their Summer Concert Series. Rentals are not allowed in this community.

Key facts

• 3,484 sq ft lot
• Built 1992
• Listed 336 days

Tags

• LARGE KITCHEN DINING AREA
• OVERSIZED SHED WITH ELECTRIC
• BOAT RAMP WITH EASY ACCESS

What this means for you Summary

Snapshot

• This is a 3-bed/2.0-bath manufactured listed at $182k. Condition is rated fair.

Deal economics

• At list price, monthly cash flow is $485 ($6k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $182k).
• Recommended offer: $161k (12.0% below list) — sets the bar for market timing.
• Cap rate 9.5% vs local median 1.4% in Ocean City — 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.

Location & tenants

• Location reads 73/100 on livability (#125 in MD) — a middle-class / working-renter tenant base. Strengths: commute A+, health & safety A+, schools B+; Watch: cost of living C-, crime 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.
• Market conditions: 2 comparable units currently listed for rent nearby; 4,354 units permitted in Sussex County in 2024 (344 in 5+ unit buildings).

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $1k of loan paydown is wiped out by about $5k of value loss. Plan a longer hold.
• Sussex County population projected at +25% by 2050 — long-run rental-demand tailwind backs the buy-and-hold thesis.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $51k cash investment doubles in ~10 years — after that, you're playing with house money.

Negotiation context

• It's been on market 336 days — a 12% lower offer ($161k) is reasonable based on typical stale-listing flexibility.

Recommended offer $160,600 (12.0% below list)

Questions for the listing agent

1. It's been on market 336 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
3. What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
4. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
5. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
6. 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?
7. Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
8. 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.
9. 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.
10. 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.

Investment metrics

• 1% rule: 1.21% ✓
• Cap rate: 9.48%
• Cash-on-cash: 11.39%
• DSCR: 1.51
• GRM: 6.9

CMA / ARV

• ARV (median comp): $185,134
• List price: $182,500
• Delta: -1.42%
• Verdict: FAIR
• Comps: 20 within 1.0 mi

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: 0.7%
• Equity multiple: 1.03×
• Total profit: $1,352
• Equity at exit: $27,211

10-year hold

• IRR: 10.3%
• Equity multiple: 1.80×
• Total profit: $41,094
• Equity at exit: $15,779

Cash invested: $51,100 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 27 Tenant-Leaning
• State Maryland: 27 Tenant-Leaning · D+14
• County: — inherits STATE
• City: — inherits STATE

Failure-to-pay is dismissed if cured before judgment; Baltimore has just-cause; strict deposit rules.

Methodology + full state rankings →

ZIP-level market 19975

• Home prices YoY: -11.2%
• Price-to-rent: 6.9×

Monthly cashflow live

• Estimated rent: $2,213 medium
• Mortgage (P&I): −$957
• Tax est. 1.5%: −$228 /mo · $2,738/yr
• Insurance: −$76
• HOA: −$2
• Vacancy / Maint / Mgmt: −$465
• Net cashflow: $485

Break-even live

Break-even rent $1,599

Max offer price $182,500

Occupancy floor 73%

Sensitivity live

Price	-10% $611	-5% $548	+0% $485	+5% $422	+10% $359
Rent	-10% $310	-5% $398	+0% $485	+5% $572	+10% $660
Rate	-1.0pp $577	-0.5pp $531	base $485	+0.5pp $438	+1.0pp $390

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $45,625
• Closing costs: $5,475
• Reserves months: —
• Total cash needed: —

Rent comps 2 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
37057 Mallard Dr Selbyville, DE	3.0	2.0	1416	$2,300	$1.62	44d	1	0.52mi
38256 Hummingbird Ln #214 Selbyville, DE	2.0	1.5	900	$2,000	$2.22	21d	1	1.03mi

HOA detail

• Monthly dues: $2 · $24/yr
• Likely covers: waterelectric

Listing history 18 events

1. 2026-06-18
   days on market $182,500 Active 336 DOM
2. 2026-06-17
   days on market $182,500 Active 335 DOM
3. 2026-06-16
   days on market $182,500 Active 334 DOM
4. 2026-06-15
   days on market $182,500 Active 333 DOM
5. 2026-06-14
   days on market $182,500 Active 331 DOM
6. 2026-06-13
   days on market $182,500 Active 330 DOM
7. 2026-06-10
   days on market $182,500 Active 328 DOM
8. 2026-06-09
   days on market $182,500 Active 327 DOM
9. 2026-06-08
   days on market $182,500 Active 326 DOM
10. 2026-06-07
    days on market $182,500 Active 325 DOM
11. 2026-06-03
    price $182,500 Active 320 DOM
12. 2026-06-02
    days on market $192,500 Active 320 DOM
13. 2026-06-01
    days on market $192,500 Active 319 DOM
14. 2026-05-31
    days on market $192,500 Active 318 DOM
15. 2026-05-30
    days on market $192,500 Active 317 DOM
16. 2026-03-31
    price $192,500 725-char remark

    Show marketing remark (725 chars)

    Welcome to 37238 Sugar Hill Way, a large 4 Bedroom 2 Bath home only about 3 miles from the beach! This mostly furnished home has 2 living areas, a large kitchen/dining area, a large primary bedroom with a full bath and 3 other good sized bedrooms. Recent upgrades include new A/C and water heater in 2022. There is also an addition with a 3rd shower. Outside there is an oversized shed with electric giving plenty of room for all of your beach toys. There is also a boat ramp with easy access to the bay for a small annual fee. This home is close to the beach, bay, shopping, restaurants, golf and Freemen Arts Pavilion, which hosts national acts during their Summer Concert Series. Rentals are not allowed in this community.

17. 2025-09-05
    price $195,000 725-char remark

    Show marketing remark (725 chars)

    Welcome to 37238 Sugar Hill Way, a large 4 Bedroom 2 Bath home only about 3 miles from the beach! This mostly furnished home has 2 living areas, a large kitchen/dining area, a large primary bedroom with a full bath and 3 other good sized bedrooms. Recent upgrades include new A/C and water heater in 2022. There is also an addition with a 3rd shower. Outside there is an oversized shed with electric giving plenty of room for all of your beach toys. There is also a boat ramp with easy access to the bay for a small annual fee. This home is close to the beach, bay, shopping, restaurants, golf and Freemen Arts Pavilion, which hosts national acts during their Summer Concert Series. Rentals are not allowed in this community.

18. 2025-07-17
    listed $199,900 Active 725-char remark

    Show marketing remark (725 chars)

    Welcome to 37238 Sugar Hill Way, a large 4 Bedroom 2 Bath home only about 3 miles from the beach! This mostly furnished home has 2 living areas, a large kitchen/dining area, a large primary bedroom with a full bath and 3 other good sized bedrooms. Recent upgrades include new A/C and water heater in 2022. There is also an addition with a 3rd shower. Outside there is an oversized shed with electric giving plenty of room for all of your beach toys. There is also a boat ramp with easy access to the bay for a small annual fee. This home is close to the beach, bay, shopping, restaurants, golf and Freemen Arts Pavilion, which hosts national acts during their Summer Concert Series. Rentals are not allowed in this community.

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Taxation est. · year 1

• Rental income: $26,555
• − Mortgage interest: −$10,223
• − Property taxes: −$2,738
• − Insurance: −$912
• − Repairs & maintenance: −$2,124
• − Management: −$2,124
• − HOA: −$24
• − Depreciation: −$5,309
• Taxable income: $3,101
• Est. tax owed @ 24.0%: −$744
• After-tax cash flow: $5,076/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Condition & rehab AI · 12 photos

Fair 45/100 Moderate rehab

This home is in fair condition with moderate repairs needed. Updating the kitchen and bathrooms would significantly increase its value.

Repairs flagged

• Major kitchen cabinets — dated and in poor condition
• Major bathroom fixtures — dated and in poor condition
• Moderate exterior siding — moderate wear

Value-add opportunities

• Both update kitchen cabinets and countertops — modernizing the kitchen would increase both resale and rental value
• Both update bathrooms with new fixtures and larger size — modernizing the bathrooms would increase both resale and rental value
• Both paint interior walls — painting the interior walls would improve the home's appearance and increase its value
• Both repair and replace exterior siding — repairing and replacing the exterior siding would improve the home's appearance and increase its value

Renovation cost estimate screening

Repair item	Severity	Est. cost
kitchen cabinets · dated and in poor condition	Major	$15,000–50,000
bathroom fixtures · dated and in poor condition	Major	$15,000–50,000
exterior siding · moderate wear	Moderate	$3,000–15,000
Total estimated repair cost · 3 items		$33,000–115,000

Value-add ROI direction

• Both update kitchen cabinets and countertops — modernizing the kitchen would increase both resale and rental value ↑
• Both update bathrooms with new fixtures and larger size — modernizing the bathrooms would increase both resale and rental value ↑
• Both paint interior walls — painting the interior walls would improve the home's appearance and increase its value ↑
• Both repair and replace exterior siding — repairing and replacing the exterior siding would improve the home's appearance and increase its value ↑

ⓘ Cost ranges are severity-bucket heuristics (US national rule-of-thumb). Get contractor quotes + a written scope before underwriting a rehab budget.

Schools (NCES district)

• District: Indian River School District
• NCES district ID: 1000680
• Math proficiency: 25% ▼ -27.00%
• Reading proficiency: 41% ▼ -17.00%
• Median HH income: $53,838
• Composite: 28.99/100
• National rank: #6620
• State rank: #14 of 26 in DE

Livability — Ocean City

• Score: 73/100
• State rank: #125
• US rank: #5407

Category grades

Amenities B Commute A+ Cost of living C- Crime F Employment B Housing B Health & safety A+ User ratings F

Schools grade is shown separately in the Schools card above.

Census & demographics

• Population (ZIP): 10,356

Population outlook (Sussex County) Hauer SSP2

• Today (2025): 248,853 people
• By 2030: 264,464 · +6.3%
• By 2040: 290,980 · +16.9%
• By 2050: 311,259 · +25.1%
• By 2075: 352,488 · +41.6%
• By 2100: 367,406 · +47.6%

Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (86%)
• Race & ethnicity: White 86% Hispanic / Latino 8% Two or more races 7% Black 3%
• Hispanic origin (detail): Mexican 4%
• Common ancestry: Romanian 4% Slovak 4% Russian 2%
• Foreign-born: 8% · Canada
• Languages at home: 89% English-only · Spanish 8% Other Indo-European 2% Russian/Polish/Slavic 1%

Political lean MEDSL · Sussex

• 2024 margin: R (+11.0) · D 43.9% · R 54.9% · Other 1.2%
• 2008→2024 swing: -2.4pp toward R · 2008: -8.6pp · 2024: -11.0pp
• All cycles: 2024: R+11.0 2020: R+11.2 2016: R+22.0 2012: R+13.0 2008: R+8.6

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -43.61%
• Current HPI: 345.1746
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 2.97%
• F500 in state: 12

Industry mix (Fortune 500 HQ in MD)

Industry	F500 HQs	Revenue
▸Aerospace / Defense	1	$71B
▸Utilities	1	$25B
▸Hotels	1	$24B
▸Consumer Goods	1	$7B
▸Real Estate	1	$6B
▸Chemicals	1	$2B

Price history

-3.7% since first listed

3 events — show timeline

• 2026-03-31 Price Changed $192,500 BRIGHT MLS
• 2025-09-05 Price Changed $195,000 BRIGHT MLS
• 2025-07-17 Listed $199,900 BRIGHT MLS

Property tax history

-31.2%/yr

Latest (2025): $266 · -31.2% YoY. Source: county tax records.