ELM Plan

Millville, DE 19945

$422,990F

5 bd · 3.0 ba · 2,415 sqft · Built — · SingleFamily · Active · 2 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $2,270/mo
• Mortgage (P&I): −$4,375
• Tax + insurance: −$1,390
• HOA: −$0
• Vac / Maint / Mgmt: −$477
• Net cashflow: $-3,972/mo
• Annual: $-47,668/yr
• Cap rate: 0.58%
• Cash-on-cash: -20.41%
• DSCR: 0.09
• 1% rule: 0.27%
• Cash to close: $233,597

Investor read

• This is a 5-bed/3.0-bath single-family listed at $423k.
• At list price, monthly cash flow is $-4k ($-48k/yr) — negative.
• To cash-flow at today's rent, offer at most $259k (38.7% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $227k (46.3% below list).
• Only 2 days on market — expect competitive offers; lowballing is unlikely to land.
• Recommended offer: $227k (46.3% below list) — sets the bar for 1% rule.
• In year one you build about $89k of equity ($6k loan paydown + $83k appreciation (10.0% local appreciation)).
• Location reads 64/100 on livability (#49 in DE) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A, housing A; Watch: schools F, amenities F, commute 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.
• Watch-outs: property tax is 3.0% of price.
• Market conditions: 281 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.
• By year 2, paydown + projected appreciation supports a ~$143k cash-out refi (75% LTV) — recoverable capital for the next deal without selling this one.
• Cap rate 0.6% vs local median 2.4% in Millville — below-typical yield; the buyer is paying a premium for something (appreciation thesis, condition, location) that the cap rate doesn't capture.

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?
• Property tax is high relative to price — has the assessment been appealed recently, and will the sale trigger a re-assessment?
• Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
• Schools are F-rated, which usually means shorter tenancies and higher turnover. Who's the typical renter profile here, and what's been the actual vacancy rate?
• 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.