Are you a homeowner in a city in Delaware such as Wilmington, New Castle, Dover, Newark? If so, then you must know that you own a home in a great area. Delaware is such a great state to own property in for many different reasons. As any homeowner in America, you should know that real estate is the best asset to own. There are plenty of various investments that one could acknowledge that could make them tons of money.
Thinking of Investing in Wilmington?
We wanted to start with Wilmington, Delaware, mainly because this is the largest populated city in the state. We also appreciate the proximity to Philadelphia. This city is an ancient city, just like most of the towns on the east coast. Located right off interstate 95, this is in a great location if you travel in any direction out of the city. There are just over seventy thousand people that live in this beautiful city. Many central banks form this skyline. With a nice little downtown area but nothing too large or overwhelming. Experts say that the average home price in this city is in the mid-two hundred thousand range, which is pretty high for a large city. Most of the towns in America, especially the smaller populated ones, do not have this large of a medium average price range. There are plenty of parts of Wilmington that are better to have a rental than others. Did you know that there is an average price range for rent in Wilmington of thirteen hundred dollars a month? Which is pretty decent for an inner-city.
Newark, Delaware is another city in the state of Delaware that we found to be a decent area to hold a rental property at. This city has a smaller population of just about thirty thousand people. This city is also home to the University of Delaware. What we found in most of our research of certain areas is that when you are by a college it becomes a decent area for a rental property. Now Newark is not that large of an area like Wilmington but we still found this a desirable place to buy. Considering its another area with cheaper taxes than you would imagine for the type of home. We found a property located in North Newark just above interstate 273. This home was purchased back in 2019 for just over $180,000. Now, this is a higher amount than the last property we mentioned. But they currently are looking to get it rented out for $1695 a month. The taxes on this home are just at $2000. Let’s break this one down for you. It is an older home in not so great of shape. We will factor in a higher maintenance cost for this one. A mortgage on this home will most likely be $1,000 – $1,200. Let us go with $1,100 as the mortgage price. Now if they get their asking each month for $1,695 then they will profit a total of $595 a month (1,695 – 1,100 = 595). Now that you got your profit each month let see what it looks like for the year. (595 x 12 = 7,140) This means after taxes if you are looking at $5,140 profit on the year. Let’s use $500 for maintenance costs. This will bring you to a Net profit of $4,640 for the year. Now, this is only if you spend those exact figures in maintenance it could be less or more some years. These numbers are not too bad you can turn profits in this area if you decided to buy and rent out a home here in Newark.
The Wonderful State of Delaware
If you are thinking about buying rental property in Newark, Wilmington, or any other part of this wonderful state then we highly recommend you do so. The figures we gave here in our examples can be better or worse depending on purchase prices. We also counted the taxes separately, which in some cases most mortgage companies can tie your taxes into your mortgage payments. This could help you manage as well as see your profits a little more clear. Rental income is one of the best types of income out there. Even if the market crashes and your property loses value. It will always go back up after things settle down. Plus there is always a rental market out there even if people are not buying.