1001 & 1003 W. 8th St. W 8th St

Wilmington, DE 19806

$1,050,000B-

81 bd · 81.0 ba · 4,350 sqft · Built 1889 · MultiFamily · Active · 61 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $18,597/mo
• Mortgage (P&I): −$5,506
• Tax + insurance: −$1,750
• HOA: −$0
• Vac / Maint / Mgmt: −$3,905
• Net cashflow: $7,435/mo
• Annual: $89,224/yr
• Cap rate: 14.79%
• Cash-on-cash: 30.35%
• DSCR: 2.35
• 1% rule: 1.77%
• Cash to close: $294,000

Investor read

• This is a 4×4bd/1ba + 5×5bd/1ba units multifamily listed at $1.05M. Condition is rated fair.
• At list price, monthly cash flow is $7k ($89k/yr) — positive. Per door: $826/mo.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($19k rent vs $1.05M).
• It's been on market 61 days — a 6% lower offer ($987k) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $987k (6.0% below list) — sets the bar for market timing.
• Local home prices are declining (-3.0%/yr); year-one equity from $7k of loan paydown is wiped out by about $32k of value loss. Plan a longer hold.
• Location reads 64/100 on livability (#52 in DE) — a middle-class / working-renter tenant base. Strengths: cost of living A+, housing A; Watch: employment D+, schools D, commute D.
• Red Clay Consolidated School District (suburban): math 27% / reading 42% proficiency, ranked #12 of 26 in DE (top 46%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Watch-outs: built in 1889 — expect roof / HVAC / electrical / plumbing capex.
• Market conditions: Rents rising fast (+5.1%/yr); 59 active listings in the ZIP; 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.
• At projected returns (-3.0% appreciation + 5.1% rent growth), your $294k cash investment doubles in ~4 years — after that, you're playing with house money.
• Cap rate 14.8% vs local median 5.6% in Wilmington — 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.
• At $18,597/mo this rent would consume 251% of the median local household income ($89k/yr) (locally 508% of renters already pay >50% of income on rent) — very limited rent-growth headroom before tenants either downsize or default.

Questions for listing agent

• It's been on market 61 days. Have you received any prior offers? Is the seller open to a 6% concession, seller financing, or rate buy-down credit?
• Can we see the unit-by-unit rent roll, current vacancy, and any below-market leases? What's the average tenancy length?
• What capital expenditures (roof, boiler, parking lot, exteriors) have been made in the last 5 years, and what's planned in the next 2?
• Have any recent inspections been done? Can we get a copy of the seller's disclosures and any deferred-maintenance estimates?
• Built in 1889 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
• 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 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?

Repairs flagged (vision-AI assessment)

• Minor: Stairs — Worn carpet
• Minor: Kitchen cabinets — Dated appearance
• Minor: Bathrooms — Dated fixtures