1000 Highland Ave

Bellefonte, DE 19809

$249,000D+

2 bd · 1.0 ba · 1,725 sqft · Built 1923 · SingleFamily · Active · 15 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,960/mo
• Mortgage (P&I): −$1,306
• Tax + insurance: −$259
• HOA: −$0
• Vac / Maint / Mgmt: −$412
• Net cashflow: $-16/mo
• Annual: $-189/yr
• Cap rate: 6.22%
• Cash-on-cash: -0.27%
• DSCR: 0.99
• 1% rule: 0.79%
• Cash to close: $69,720

Investor read

• This is a 2-bed/1.0-bath single-family listed at $249k.
• At list price, monthly cash flow is $-16 ($-189/yr) — negative.
• To cash-flow at today's rent, offer at most $246k (1.1% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $196k (21.3% below list).
• It's been on market 15 days — a 2% lower offer ($245k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $196k (21.3% below list) — sets the bar for 1% rule.
• Local home prices are declining (-3.0%/yr); year-one equity from $2k of loan paydown is wiped out by about $7k of value loss. Plan a longer hold.
• Location reads 75/100 on livability (#6 in DE, #4,252 nationally) — a middle-class / working-renter tenant base. Strengths: crime A+, housing A+, employment A; Watch: amenities F, commute F, health & safety D-.
• 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: Mount Pleasant Elementary School (math 37% / reading 37%, grade F, #31 of 105 statewide, top 31%, 704 students, 0% FRL); Dupont (Pierre S.) Middle School (math 40% / reading 50%, grade D, #4 of 36 statewide, top 11%, 821 students, 0% FRL); Mount Pleasant High School (math 27% / reading 57%, grade F, #10 of 40 statewide, top 26%, 1,107 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.
• Watch-outs: built in 1923 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+6.2%/yr); 48 active listings in the ZIP; 2 comparable units currently listed for rent nearby; solid renter incomes; 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.
• Current owner paid $18k; list at $249k implies a 1246% gain — meaningful room to come down on a strong offer.
• Climate carrying-cost: major wind risk, 27% chance of damaging wind over 30y; extreme-heat days projected 7→15/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?
• Built in 1923 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• 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.
• 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.