Delaware Rental Market

6 Replies

Hey everyone- Thanks for reading. I currently live in NJ however am considering moving my investment to Delaware because of the lower taxes. Could anyone recommend a good area in Delaware with a strong rental market? I have been considering college towns but I'm looking for some feedback from anyone who has worked with tenants before in Delaware. Thanks again!

It will all depend on your price point.  Newark (where the University of Delaware is located) is going to be pretty expensive since the city is apparently no longer giving out rental permits in the neighborhoods surrounding the University.  Therefore, you would really only be looking to buy properties with the grandfathered permit.  That being said, I am sure there are ways to get around the permitting issues since there are new apartment buildings going up all the time.

Other than that I would look in the nicer areas of Wilmington like Trolley Square, Mid-town Brandywine, Happy Valley, the Highlands, and parts of Little Italy.  Little Italy and Mid-town Brandywine would be your lower price points.  Rentals get filled pretty easily from what I have heard and you would be renting to mostly young professionals in those areas.

@Glen Beringer - I second glen's statement.  As hard as I look in Newark, I can not find anything that meets my numbers.  That's why I ended up buying my first property in Wilmington.  My property is actually in St. Elizabeth's area which is not as nice as the neighborhoods Glen mentioned, but defiantly some deals to be found.  

@John Cimino - St. Elizabeth's area isn't too bad but it gets bad quickly over there.  Union Park Gardens is also a nicer pocket neighborhood.  I've thought about buying in trinity vicinity and Cool Springs as well, but they are right next to really bad areas and some of that crime carries over into those neighborhoods.  My rule of thumb is only buy in neighborhoods where I would live.  That being said, I grew up in the suburbs so I tend to shy away from fringe neighborhoods more than someone who might be more used to city living.

Steve. I would love to help you get started in the right path as I've been rental portfolios in multi states. I currently live and invest in Delaware. I've learned the market intricacies throughout New Castle County. There are many areas I would say work but pockets inside those areas you'd want to stay away from. I saw you mention student housing but within that at UD you are bound by city limits and rental permits. Wilmington has become and will remain a great area to invest but changes from street to street. We'd need to know more about your goals. Are you looking for cash flow or more elf and appreciation play? Feel free to hit me up and if be glad to assist you in building your portfolio. All the best always.

@Steve Novosel as the rest of the guys indicated it all depends on price point. But overall, Delaware always need rentals. I receive rental request from New Castle County to Kent County. For my investors I never have problems locating a tenant. In Wilmington you'll find more duplexes and triplexes. Newark is a mix of all types of housing. What is your investment type?

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