29000 Indian Harbor Dr #32

Ocean View, DE 19930

$1,199,999F

4 bd · 3.0 ba · 712 sqft · Built 1984 · Condo · Active · 539 DOM

Cashflow @ list (25.0% down · 7.5%)

• Estimated rent: $4,143/mo
• Mortgage (P&I): −$6,293
• Tax + insurance: −$2,460
• HOA: −$592
• Vac / Maint / Mgmt: −$870
• Net cashflow: $-6,072/mo
• Annual: $-72,866/yr
• Cap rate: 0.68%
• Cash-on-cash: -20.04%
• DSCR: 0.11
• 1% rule: 0.35%
• Cash to close: $336,000

Investor read

• This is a 4-bed/3.0-bath condo listed at $1.20M.
• At list price, monthly cash flow is $-6k ($-73k/yr) — negative.
• To cash-flow at today's rent, offer at most $321k (73.2% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $414k (65.5% below list).
• It's been on market 539 days — a 12% lower offer ($1.06M) is reasonable based on typical stale-listing flexibility.
• Recommended offer: $321k (73.2% below list) — sets the bar for cash-flow.
• Local home prices are declining (-3.0%/yr); year-one equity from $8k of loan paydown is wiped out by about $36k of value loss. Plan a longer hold.
• Location reads 69/100 on livability (#27 in DE) — a middle-class / working-renter tenant base. Strengths: crime A+, employment A+, schools A; Watch: amenities F, commute F, cost of living 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: flood insurance adds $460/mo.
• Market conditions: 89 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.
• 2 sale attempts since 2y ago with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.
• Climate carrying-cost: in FEMA flood zone AE (mandatory federal flood insurance); 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.
• Cap rate 0.7% vs local median 1.9% in Ocean View — 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?
• It's been on market 539 days. Have you received any prior offers? Is the seller open to a 73% concession, seller financing, or rate buy-down credit?
• What's the actual annual flood-insurance premium (NFIP or private), and is the property in a SFHA with mandatory coverage?
• What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
• Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
• 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 A-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?