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.
There are plenty of good areas around the City of Newark that are good rental homes, but are not within the city limits and don't need the rental permit. Please contact me if you have any questions.
@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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