42 Colonial Ln · Lewes, DE 19971

$138,900

2 bd · 2.0 ba · 992 sqft · Land · 161 Days on market

Built 2025 $140/sqft · 78% above area

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

• Cash flow +30.0/30.0
• 1% rule +10.0/10.0
• DSCR +10.0/10.0
• ARV discount +7.5/15.0
• Schools +4.2/10.0
• Livability +3.4/5.0
• Rent growth +2.5/5.0
• Condition / age +2.5/5.0
• Appreciation +0.0/10.0

Listing remarks MLS

Brand new professionally furnished 16' x 66' 2 bedroom 2 bath 922 sq ft manufactured home available in Colonial Estates MHP Rehoboth Beach DE. Home features include vinyl floors throughout, stainless steel appliance package, thermal pane windows, residential exterior doors, one piece tub/shower, front porch, heat pump, furniture and decor and more to see! The community offers an in-ground outdoor pool, playground with equipment/picnic area, club house/community center and dog park. Located just minutes to the beaches, restaurants and nightlife in Rehoboth Beach and Lewes DE. Schedule your showing today!

Key facts

• Heat pump
• Vinyl floors
• Front porch

Tags

• VINYL FLOORS
• THERMAL PANE WINDOWS
• RESIDENTIAL EXTERIOR DOORS
• ONE PIECE TUB/SHOWER
• FRONT PORCH
• HEAT PUMP

What this means for you Summary

Snapshot

• This is a 2-bed/2.0-bath land listed at $139k.

Deal economics

• At list price, monthly cash flow is $993 ($12k/yr) — positive.
• The deal already cash-flows at list — no discount required.
• Meets the 1% rule at list price ($2k rent vs $139k).
• Recommended offer: $122k (12.0% below list) — sets the bar for market timing.
• Cap rate 14.9% 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.
• Market conditions: 331 active listings in the ZIP; 9 comparable units currently listed for rent nearby; rentals lingering (median 45d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 56% of comp listings sitting > 30 days — soft ceiling on asking rent; 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 $960 of loan paydown is wiped out by about $4k 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.
• At projected returns (-3.0% appreciation + 3.0% rent growth), your $39k cash investment doubles in ~4 years — after that, you're playing with house money.

Negotiation context

• It's been on market 161 days — a 12% lower offer ($122k) is reasonable based on typical stale-listing flexibility.

Risks & watch-outs

• Climate carrying-cost: 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 $122,232 (12.0% below list)

Questions for the listing agent

1. It's been on market 161 days. Have you received any prior offers? Is the seller open to a 12% concession, seller financing, or rate buy-down credit?
2. Why hasn't it sold? Are there any deal-killer items the seller is aware of (foundation, flood, title, zoning, code violations)?
3. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
4. 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?
5. 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.
6. 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.
7. 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: 1.64% ✓
• Cap rate: 14.87%
• Cash-on-cash: 30.64%
• DSCR: 2.36
• GRM: 5.1

CMA / ARV

• ARV (median comp): $78,122
• List price: $138,900
• Delta: 77.80%
• Verdict: OVERPRICED
• Comps: 20 within 1.0 mi

Projected returns pro-forma

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

5-year hold

• IRR: 25.3%
• Equity multiple: 2.05×
• Total profit: $40,686
• Equity at exit: $20,710

10-year hold

• IRR: 33.0%
• Equity multiple: 4.00×
• Total profit: $116,642
• Equity at exit: $12,010

Cash invested: $38,892 (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: 5.1×

Monthly cashflow live

• Estimated rent: $2,284 high
• Mortgage (P&I): −$728
• Tax from tax record: −$25 /mo · $298/yr
• Insurance: −$58
• HOA: −$0
• Vacancy / Maint / Mgmt: −$480
• Net cashflow: $993

Break-even live

Break-even rent $1,027

Max offer price $138,900

Occupancy floor 52%

Sensitivity live

Price	-10% $1,072	-5% $1,032	+0% $993	+5% $954	+10% $748
Rent	-10% $813	-5% $903	+0% $993	+5% $1,083	+10% $1,174
Rate	-1.0pp $1,063	-0.5pp $1,028	base $993	+0.5pp $957	+1.0pp $920

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: $34,725
• Closing costs: $4,167
• Reserves months: —
• Total cash needed: —

Rent comps 9 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	$2,095	$1.99	45d	1	0.45mi
15 Colgate Dr Rehoboth Beach, DE	3.0	2.0	1120	$2,275	$2.03	22d	1	0.46mi
300 Pebble Dr #318 Rehoboth Beach, DE	2.0	2.0	940	$1,800	$1.91	22d	1	0.68mi
35948 Haven Dr #201 Rehoboth Beach, DE	2.0	2.0	858	$1,800	$2.10	22d	1	0.75mi
17829 Callaway Dr #37 Lewes, DE	3.0	2.0	1000	$2,000	$2.00	45d	1	0.97mi
107 Strawberry Way Rehoboth Beach, DE	3.0	2.0	1025	$2,750	$2.68	45d	1	1.04mi
36916 Crooked Hammock Way Lewes, DE	2.0–3.0	2.0	1172	$1,990	$1.70	45d	1	1.14mi
18482 Evelynton Rd Lewes, DE	2.0	2.0	1100	$1,650	$1.50	14d	1	1.43mi
10150 Rockland St Lewes, DE	1.0–3.0	1.5–2.5	1217	$3,375	$2.77	45d	1	1.48mi

Listing history 17 events

1. 2026-06-18
   days on market $138,900 Active 161 DOM
2. 2026-06-17
   days on market $138,900 Active 160 DOM
3. 2026-06-16
   days on market $138,900 Active 159 DOM
4. 2026-06-15
   days on market $138,900 Active 158 DOM
5. 2026-06-14
   days on market $138,900 Active 156 DOM
6. 2026-06-13
   days on market $138,900 Active 155 DOM
7. 2026-06-10
   days on market $138,900 Active 153 DOM
8. 2026-06-09
   days on market $138,900 Active 152 DOM
9. 2026-06-08
   days on market $138,900 Active 151 DOM
10. 2026-06-07
    days on market $138,900 Active 150 DOM
11. 2026-06-05
    days on market $138,900 Active 147 DOM
12. 2026-06-03
    days on market $138,900 Active 146 DOM
13. 2026-06-02
    days on market $138,900 Active 145 DOM
14. 2026-06-01
    days on market $138,900 Active 144 DOM
15. 2026-05-31
    days on market $138,900 Active 143 DOM
16. 2026-05-30
    days on market $138,900 Active 142 DOM
17. 2026-01-08
    listed $138,900 Active 611-char remark

    Show marketing remark (611 chars)

    Brand new professionally furnished 16' x 66' 2 bedroom 2 bath 922 sq ft manufactured home available in Colonial Estates MHP Rehoboth Beach DE. Home features include vinyl floors throughout, stainless steel appliance package, thermal pane windows, residential exterior doors, one piece tub/shower, front porch, heat pump, furniture and decor and more to see! The community offers an in-ground outdoor pool, playground with equipment/picnic area, club house/community center and dog park. Located just minutes to the beaches, restaurants and nightlife in Rehoboth Beach and Lewes DE. Schedule your showing today!

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

Tax reassessment forecast DE · Partial reset (capped growth)

• Current annual tax: $298 · $25/mo
• Projected year-2 tax: $552 · $46/mo
• Expected delta: +$254/yr (+$21/mo · 85.1%)

ⓘ Screening estimate from a state-policy table — verify with the county assessor before closing.

Climate risk First Street

• 🌊 Flood 1/10 Low FEMA zone X (unshaded) · 0% chance over 30 yrs
• 🔥 Wildfire 1/10 Low
• 🌡 Heat 8/10 Severe 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: $27,406
• − Mortgage interest: −$7,781
• − Property taxes: −$298
• − Insurance: −$694
• − Repairs & maintenance: −$2,192
• − Management: −$2,192
• − Depreciation: −$4,041
• Taxable income: $10,207
• Est. tax owed @ 24.0%: −$2,450
• After-tax cash flow: $9,467/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

• 2026-01-08 Listed $138,900 BRIGHT MLS

Property tax history

+3.7%/yr

Latest (2020): $298 · -0.1% YoY. Source: county tax records.