42 Colonial Ln · Rehoboth Beach, DE 19971

$138,900

2 bd · 2.0 ba · 992 sqft · Land · 176 Days on market

Built 2025 Good condition $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 +5.0/10.0
• Condition / age +4.0/5.0
• Livability +3.6/5.0
• Rent growth +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. Condition is rated good.

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 1.4% in Rehoboth Beach — 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 71/100 on livability (#20 in DE) — a middle-class / working-renter tenant base. Strengths: amenities A+, employment A+, health & safety A+; Watch: crime F, 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: Lewes Elementary School (math 58% / reading 60%, grade B-, #4 of 105 statewide, top 4%, 582 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: 426 active listings in the ZIP; 9 comparable units currently listed for rent nearby; rentals lingering (median 93d on market — plan ~5-8 weeks vacancy on turnover, expect pricing pressure); 100% 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 176 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 176 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 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?
5. Crime grade is F in this area — have there been break-ins, vandalism, or insurance claims at this property in the last 3 years? What carrier currently insures it and at what premium?
6. 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.
7. 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.
8. 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): $77,954
• List price: $138,900
• Delta: 78.18%
• Verdict: OVERPRICED
• Comps: 20 within 1.0 mi

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
11 Colonial Ln	0.03mi	3/2.0 (+1)	980 (-1%)	0mo	$55,000	$56	91
33 Gunpowder Ln	0.18mi	2/2.0	980 (-1%)	0mo	$89,000	$91	90
42 Lantern Ln #11681	0.04mi	2/2.0	938 (-5%)	2mo	$79,900	$85	88
33 Lantern Ln	0.04mi	3/2.0 (+1)	924 (-7%)	2mo	$67,500	$73	80
100 Cascade Ln #101	0.64mi	2/2.0	940 (-5%)	0mo	$355,000	$378	61
18006 Howard Dr	0.65mi	2/3.0	960 (-3%)	1mo	$185,000	$193	60
35653 Highlands Way #182	0.33mi	3/2.0 (+1)	1,108 (+12%)	2mo	$115,000	$104	59
200 Pebble Dr #207	0.71mi	2/2.0	1,038 (+5%)	1mo	$352,000	$339	58
13 Wagon Wheel Ln #14374	0.24mi	3/2.0 (+1)	1,200 (+21%)	2mo	$125,000	$104	58
112 Lakeside Dr	1.45mi	2/2.0	928 (-6%)	1mo	$365,000	$393	53
19648 Queen St	1.33mi	3/2.0 (+1)	1,224 (+23%)	1mo	$185,900	$152	34
34283 Beech Dr	1.00mi	3/2.0 (+1)	1,240 (+25%)	1mo	$345,000	$278	34

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

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: 426
• 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
• Club membership (one-time): —
• 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	93d	1	0.45mi
15 Colgate Dr Rehoboth Beach, DE	3.0	2.0	1120	$2,275	$2.03	70d	1	0.46mi
300 Pebble Dr #318 Rehoboth Beach, DE	2.0	2.0	940	$1,800	$1.91	70d	1	0.68mi
35948 Haven Dr #201 Rehoboth Beach, DE	2.0	2.0	858	$1,800	$2.10	70d	1	0.75mi
17829 Callaway Dr #37 Lewes, DE	3.0	2.0	1000	$2,000	$2.00	93d	1	0.97mi
107 Strawberry Way Rehoboth Beach, DE	3.0	2.0	1025	$2,750	$2.68	93d	1	1.04mi
36916 Crooked Hammock Way Lewes, DE	2.0–3.0	2.0	1172	$1,990	$1.70	93d	1	1.14mi
18482 Evelynton Rd Lewes, DE	2.0	2.0	1100	$1,650	$1.50	62d	1	1.43mi
10150 Rockland St Lewes, DE	1.0–3.0	1.5–2.5	1217	$3,375	$2.77	93d	1	1.48mi

Listing history 28 events

1. 2026-07-03
   days on market $138,900 Active 176 DOM
2. 2026-07-02
   days on market $138,900 Active 175 DOM
3. 2026-07-01
   days on market $138,900 Active 174 DOM
4. 2026-06-30
   days on market $138,900 Active 173 DOM
5. 2026-06-29
   days on market $138,900 Active 172 DOM
6. 2026-06-28
   days on market $138,900 Active 171 DOM
7. 2026-06-28
   days on market $138,900 Active 170 DOM
8. 2026-06-27
   days on market $138,900 Active 169 DOM
9. 2026-06-25
   days on market $138,900 Active 167 DOM
10. 2026-06-23
    days on market $138,900 Active 165 DOM
11. 2026-06-22
    days on market $138,900 Active 164 DOM
12. 2026-06-18
    days on market $138,900 Active 161 DOM
13. 2026-06-17
    days on market $138,900 Active 160 DOM
14. 2026-06-16
    days on market $138,900 Active 159 DOM
15. 2026-06-15
    days on market $138,900 Active 158 DOM
16. 2026-06-14
    days on market $138,900 Active 156 DOM
17. 2026-06-13
    days on market $138,900 Active 155 DOM
18. 2026-06-10
    days on market $138,900 Active 153 DOM
19. 2026-06-09
    days on market $138,900 Active 152 DOM
20. 2026-06-08
    days on market $138,900 Active 151 DOM
21. 2026-06-07
    days on market $138,900 Active 150 DOM
22. 2026-06-05
    days on market $138,900 Active 147 DOM
23. 2026-06-03
    days on market $138,900 Active 146 DOM
24. 2026-06-02
    days on market $138,900 Active 145 DOM
25. 2026-06-01
    days on market $138,900 Active 144 DOM
26. 2026-05-31
    days on market $138,900 Active 143 DOM
27. 2026-05-30
    days on market $138,900 Active 142 DOM
28. 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.

Condition & rehab AI · 9 photos

Good 80/100 Cosmetic rehab Est. rehab $4,960–$14,880 screening

This 2-bedroom, 2-bath manufactured home in Rehoboth Beach, DE is in good condition with recent updates and a good condition score. It's move-in ready with a fresh paint job and landscaping potential to further enhance its value.

Components & finishes AI

Roof asphalt shingle · good Flooring hardwood Counters granite Appliances stainless steel HVAC central · new lt5

Value-add opportunities

• Both Landscaping — Enhances curb appeal and adds value ↑
• Both Painting exterior — Fresh paint can improve curb appeal and value ↑
• Both Landscaping and curb appeal — Improves overall aesthetic and value ↑

ⓘ Rehab cost is a screening estimate — Cosmetic scope × the home's square footage at US $/sqft rules of thumb (the same model as the Flip Finder). Get contractor quotes + a written scope before underwriting.

F Composite school gradezoned avg 50/100

Zoned Schools

Elementary Rehoboth Elementary School C DE #8/105 Nat'l #9,513/41,679 Middle Beacon Middle School B- DE #1/36 Nat'l #2,418/14,009 High Cape Henlopen High School F DE #14/40 Nat'l #8,796/17,239

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

B Composite livability gradescore 71/100

Livability — Rehoboth Beach

• Score: 71/100
• State rank: #20
• US rank: #6520

Category grades

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

Schools grade is shown separately in the Schools card above.

Census & demographics

• County: Sussex County · 248,853 people
• City population: 14,886
• Metro: Salisbury, MD-DE
• Population (ZIP): 14,886
• Household income: $102,146
• Rent vs Own: 13.2% rent · 86.8% own
• Severe rent burden: 8% of renters

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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%

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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%

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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.