35615 South St #4 · Lewes, DE 19971

$420,000

3 bd · 3.0 ba · 728 sqft · Townhouse public records · 48 Days on market

Built 2001 $577/sqft · 145% above area Est $512k · 18% under $250/mo HOA · 10% of rent

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Why this score? — see what drove the F 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).

• ARV discount +15.0/15.0
• Schools +4.2/10.0
• Cash flow +4.0/30.0
• Livability +3.4/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• 1% rule +1.0/10.0
• DSCR +0.0/10.0
• Appreciation +0.0/10.0

Listing remarks

Welcome to 35615 South Street, Unit #4, a beautifully remodeled end-unit townhome in the centrally located community of South Street Station. Offering approximately 1,500 square feet of above-grade living space, this home delivers comfort, style, and exceptional convenience to everything coastal Delaware has to offer. The main living areas feature 4 bedrooms and 4 full bathrooms, including two primary suites—one conveniently located on the main level and another upstairs—offering flexibility for multi-generational living or hosting guests. The open and inviting layout is complemented by modern updates throughout. As an end unit, the home enjoys added natural light and privacy, w

Key facts

• Spacious bonus room
• $250 HOA
• 3 parking spots

Tags

• REMODELED END-UNIT TOWNHOME
• CENTRALLY LOCATED COMMUNITY
• EXPANSIVE OUTDOOR DECK
• FULLY FINISHED BASEMENT
• SPACIOUS BONUS ROOM
• EASY IN-AND-OUT ACCESS

Property features AI

Finance

• HOA & community: Quarterly condo fee of $750; Owner/self-managed association; HOA covers common area maintenance, exterior building maintenance, lawn maintenance, reserve funds, road maintenance, snow removal, trash, and water; Road maintenance responsibility handled by HOA; Ground rent paid annually

Exterior

• Parking: Paved parking lot with 3 spaces (total 3 garage/parking spaces)
• Utilities: Fiber optic internet available; Electric heating/cooling and hot water; Public sewer; Community / shared well water; No municipal trash service
• Home design: Condominium ownership; End of row townhouse; Very good condition; Year built (per assessor)
• Construction: Concrete perimeter foundation; Concrete and frame construction with vinyl siding; CPVC/PVC plumbing; Architectural shingle roof
• Exterior features: Deck(s); Not in a federal flood zone; Above- and below-grade structures

Interior

• Kitchen: Dishwasher; Microwave; Electric range/oven; Refrigerator; Stainless steel appliances
• Bedrooms: 3 bedrooms on the upper level; 1 bedroom on the main level
• Flooring: Ceramic tile; Luxury vinyl plank
• Bathrooms: 2 full bathrooms on the upper level; 1 full bathroom on the main level; 1 full bathroom on the lower level; 4 full bathrooms total
• Heating & cooling: Heat pump(s); Central air (electric); 200+ amp electrical service
• Interior features: Ceiling fans; Combination kitchen and dining area; Entry-level bedroom; Galley kitchen; Drywall walls and ceilings; Fully finished basement
• Laundry & utility: Washer; Dryer (electric); Laundry located on upper floor; Electric water heater

What this means for you Summary

Snapshot

• This is a 3-bed/3.0-bath townhouse listed at $420k.

Deal economics

• At list price, monthly cash flow is $-1k ($-14k/yr) — negative.
• To cash-flow at today's rent, offer at most $250k (40.6% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $250k (40.5% below list).
• Recommended offer: $250k (40.6% below list) — sets the bar for cash-flow.
• Cap rate 2.9% vs local median 1.7% in Lewes — 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 67/100 on livability (#40 in DE) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, health & safety A+; Watch: commute F, cost of living F.
• Cape Henlopen School District (town): math 42% / reading 55% proficiency, ranked #5 of 26 in DE (top 19%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Rehoboth Elementary School (math 51% / reading 60%, grade C, #8 of 105 statewide, top 8%, 525 students, 0% FRL); Beacon Middle School (math 49% / reading 62%, grade B-, #1 of 36 statewide, top 0%, 648 students, 0% FRL); Cape Henlopen High School (math 26% / reading 51%, grade F, #14 of 40 statewide, top 33%, 1,813 students, 0% FRL) — zoned schools average 0% FRL vs 41% district-wide (41 pts lower); this property's tenant base skews higher-income than the district average.
• Market conditions: 331 active listings in the ZIP; 1 comparable units currently listed for rent nearby; solid renter incomes; 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 $3k of loan paydown is wiped out by about $13k 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.

Negotiation context

• It's been on market 48 days — a 3% lower offer ($407k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Climate carrying-cost: major 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.

Recommended offer $249,512 (40.6% below list)

Questions for the listing agent

1. 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?
2. It's been on market 48 days. Have you received any prior offers? Is the seller open to a 41% concession, seller financing, or rate buy-down credit?
3. What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
4. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
5. 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?
6. 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?
7. 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.
8. 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.
9. 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: 0.60% ✗
• Cap rate: 2.93%
• Cash-on-cash: -12.02%
• DSCR: 0.47
• GRM: 14.0

CMA / ARV

• ARV (median comp): $511,504
• List price: $420,000
• Delta: -17.89%
• Verdict: UNDERPRICED
• Comps: 20 within 1.0 mi

Projected returns pro-forma

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

5-year hold

• IRR: -38.4%
• Equity multiple: -0.22×
• Total profit: $-142,907
• Equity at exit: $62,623

10-year hold

• IRR: -57.3%
• Equity multiple: -0.87×
• Total profit: $-220,290
• Equity at exit: $36,314

Cash invested: $117,600 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 70 Landlord-Friendly
• State Delaware: 70 Landlord-Friendly · D+7
• County: — inherits STATE
• City: — inherits STATE

Court of Common Pleas hears L&T; moderate-paced. No state rent control.

Methodology + full state rankings →

ZIP-level market 19971

• Active inventory: 331
• Price-to-rent: 14.0×

Monthly cashflow live

• Estimated rent: $2,499 medium
• Mortgage (P&I): −$2,203
• Tax est. 1.5%: −$525 /mo · $6,300/yr
• Insurance: −$175
• HOA: −$250
• Vacancy / Maint / Mgmt: −$525
• Net cashflow: $-1,178

Break-even live

Break-even rent $3,991

Max offer price $249,512

Occupancy floor —

Sensitivity live

Price	-10% $-888	-5% $-1,033	+0% $-1,178	+5% $-1,323	+10% $-1,468
Rent	-10% $-1,376	-5% $-1,277	+0% $-1,178	+5% $-1,079	+10% $-981
Rate	-1.0pp $-967	-0.5pp $-1,071	base $-1,178	+0.5pp $-1,287	+1.0pp $-1,398

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: $105,000
• Closing costs: $12,600
• Reserves months: —
• Total cash needed: —

Rent comps 1 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
32015 Azure Ave Rehoboth Beach, DE	1.0–3.0	1.0–2.0	1054	$2,375	$2.25	45d	1	0.33mi

HOA detail

• Monthly dues: $250 · $3,000/yr

Listing history 17 events

1. 2026-06-18
   days on market $420,000 Active 48 DOM
2. 2026-06-17
   days on market $420,000 Active 47 DOM
3. 2026-06-16
   days on market $420,000 Active 46 DOM
4. 2026-06-15
   days on market $420,000 Active 45 DOM
5. 2026-06-14
   days on market $420,000 Active 43 DOM
6. 2026-06-13
   days on market $420,000 Active 42 DOM
7. 2026-06-10
   days on market $420,000 Active 40 DOM
8. 2026-06-09
   days on market $420,000 Active 39 DOM
9. 2026-06-08
   days on market $420,000 Active 38 DOM
10. 2026-06-07
    days on market $420,000 Active 37 DOM
11. 2026-06-05
    days on market $420,000 Active 34 DOM
12. 2026-06-03
    days on market $420,000 Active 33 DOM
13. 2026-06-02
    days on market $420,000 Active 32 DOM
14. 2026-06-01
    days on market $420,000 Active 31 DOM
15. 2026-05-31
    days on market $420,000 Active 30 DOM
16. 2026-05-30
    days on market $420,000 Active 29 DOM
17. 2026-05-02
    listed $420,000 Active 1593-char remark

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

Climate risk First Street

• 🌊 Flood 6/10 Major FEMA zone X (unshaded) · 70% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 9/10 Extreme 7 d/yr ≥101°F today · 18 d/yr by 30 yrs out
• 💨 Wind 8/10 Severe 80% chance of damaging wind over 30 yrs
• 🫁 Air quality 2/10 Low 1 unhealthy d/yr today · 1 by 30 yrs out

Taxation est. · year 1

• Rental income: $29,990
• − Mortgage interest: −$23,527
• − Property taxes: −$6,300
• − Insurance: −$2,100
• − Repairs & maintenance: −$2,399
• − Management: −$2,399
• − HOA: −$3,000
• − Depreciation: −$12,218
• Taxable loss: −$21,953
• Est. tax savings @ 24.0%: +$5,269
• After-tax cash flow: $-8,870/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.

Schools (NCES district)

• District: Cape Henlopen School District
• NCES district ID: 1000170
• Math proficiency: 42% ▼ -14.00%
• Reading proficiency: 55% ▼ -10.00%
• Median HH income: $60,196
• Composite: 42.47/100
• National rank: #3214
• State rank: #5 of 26 in DE

Livability — Lewes

• Score: 67/100
• State rank: #40
• US rank: #11077

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• County: Sussex County · 82,708 people
• City population: 31,938
• Metro: Salisbury, MD-DE
• Population (ZIP): 14,886
• Household income: $102,146
• Rent vs Own: 13.2% rent · 86.8% own
• Severe rent burden: 317.0

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 (88%)
• Race & ethnicity: White 88% Black 4% Two or more races 4% Hispanic / Latino 3% Asian 2%
• Common ancestry: Romanian 5% Slovak 3% Italian 3%
• Foreign-born: 6% · Canada, China
• Languages at home: 95% English-only · Spanish 2% Russian/Polish/Slavic 1% French/Haitian/Cajun 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: ▼ -220.39%
• Current HPI: 353.3977
• Rent YoY: —
• Metro: Salisbury, MD-DE
• State GDP YoY: —
• F500 in state: 0

Price history

1 event — show timeline

• 2026-05-02 Listed $420,000 BRIGHT MLS

Property tax history

+1.3%/yr

Latest (2025): $656 · -11.9% YoY. Source: county tax records.