6339 Pebblebrook Dr

Milford, DE 19963

$270,000F

3 bd · 3.0 ba · 388 sqft · Built 2020 · SingleFamily · Pending · 17 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $1,438/mo
• Mortgage (P&I): −$1,416
• Tax + insurance: −$168
• HOA: −$15
• Vac / Maint / Mgmt: −$302
• Net cashflow: $-463/mo
• Annual: $-5,551/yr
• Cap rate: 4.24%
• Cash-on-cash: -7.34%
• DSCR: 0.67
• 1% rule: 0.53%
• Cash to close: $75,600

Investor read

• This is a 3-bed/3.0-bath single-family listed at $270k. Condition is rated good.
• At list price, monthly cash flow is $-463 ($-6k/yr) — negative.
• To cash-flow at today's rent, offer at most $188k (30.3% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $144k (46.7% below list).
• It's been on market 17 days — a 2% lower offer ($266k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $144k (46.7% 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 $8k of value loss. Plan a longer hold.
• Location reads 62/100 on livability (#61 in DE) — a middle-class / working-renter tenant base. Strengths: cost of living A+, health & safety A+, housing A-; Watch: crime F, amenities F, commute F.
• Milford School District (town): math 18% / reading 32% proficiency, ranked #22 of 26 in DE (top 85%) — low school quality limits family demand, transient renter base, plan for 1-2y turnover.
• Zoned schools: Mispillion Elementary (math 13% / reading 27%, grade F, #76 of 105 statewide, top 72%, 561 students, 0% FRL); Milford Central Academy (math 21% / reading 36%, grade F, #17 of 36 statewide, top 46%, 1,068 students, 0% FRL); Milford Senior High School (math 17% / reading 32%, grade F, #27 of 40 statewide, top 69%, 1,279 students, 0% FRL) — zoned schools average 0% FRL vs 51% district-wide (51 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: 208 active listings in the ZIP; 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.
• Climate carrying-cost: major wind risk, 76% chance of damaging wind over 30y; extreme-heat days projected 7→17/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?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are D-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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?
• 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.