Listing Courtesy of OCEAN ATLANTIC SOTHEBY'S INTL REALTY
It’s a good thing that the human body is constructed the way it is, which is to make it difficult to do any real damage by kicking yourself. Particularly after many of us recall quite clearly how incredibly low Dewey Beach prices dived during the last decade’s real estate meltdown. When you see the bounce back the intervening years have brought, if you are at all investment-minded, you want to at least smack your forehead…
The good news isn’t just that the rebound looks to be progressing still, but that in the realm of Dewey Beach rental investments, the wished-for growth in underlying value of any investment property may be only half the goal. There is also the ongoing cash-generation to consider.
If you were to set out to search for a property to become one of the Dewey Beach rental investment income producers, one place to start out is to think about a two-part qualifying question:
Part 1: will you be actively managing the rental investment property? Realistically, do you have the time and inclination to do so? As a true investment rather than a sideline avocation, the answer to that question should take into account what your time is worth elsewhere. Whether you are a fully-engaged professional or a massively-overstressed soccer mom (or, heaven forbid, both!), the cost of hiring a professional management firm might be the better choice. Zillow notes a starting point for estimating management services at around 6%-8% of the rent number (which may or may not include services like re-leasing services).
The answer to that Part 1 consideration will give you a firm basis for estimating the answer to Part 2: What is the price range of the properties you should consider. Managing the rental yourself will increase the bottom line, but that’s only one of your rental’s operating expenses. The complete operating budget will include maintenance (generally ballparked at 1% per year of the property’s value), insurance, taxes, and any HOA and gardening fees.
The next step is to investigate what the income stream is likely to be. The local classifieds will show what comparable Dewey Beach rentals are going for. There are also a number of online information sources like Rentometer, craigslist, Zillow and Trulia that should supply a good approximation of today’s market. Once you find where those rates stand, you’ll be able to pencil out the cash-generating potential of candidate property.
At every step of the way—from first looks at the many promising Dewey Beach rental investment properties, to introductions to the kind of reliable local tradespeople who make a landlord’s life easier—I offer my clients fully-engaged service and advice. Give me a call! Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestatemarket.com.
Micro apartments, once considered a momentary fad, are become an increasingly popular choice for city residents across the nation. It's a trend that might signal the beginnings of a shift in Sussex County apartment living as well.
The tiny apartments known as “micro apartments” generally feature a small bedroom, private sitting area, bathroom...but not much more. In a typical floor plan, a living unit has 200 square feet or less -a far cry from American norms for the better part of a century. It is true, though, that there is nothing new about cramped apartments and shared living spaces. What sets today’s micro apartments apart is their success in combining comfort and livability with the affordability that is their main appeal. Design features such as folding bed alcoves, high ceilings and raised closets help to create an illusion of space when the actual living area is tinier than even the smallest traditional apartment.
Smaller apartments share micro apartments' standout characteristic: micro rental prices. It's an attracting that has always proved popular among younger Sussex County apartment dwellers with entry level jobs, service industry employees who want to live closer to work, older single adults, students, and retirees who want to shed their empty nests and settle in convenience-packed urban areas. With reduced square space, micro apartments are not only cheaper to buy or rent, but usually significantly easier to clean and maintain. Many of the new micro apartment units also feature nearly as much storage space as much larger apartments.
The newest wave of micro apartments does have their share of detractors. Some have expressed concern that encouraging landlords to increase their ability to collect rent from more tenants in a smaller space will likely invite rent increases for standard-sized apartments.
Urban living remains desirable for many—but affordability remains a limiting factor. Micro apartments raise a new possibility for providing a cost-effective option that wasn't on the horizon even a few years ago. Whether or not the “thinking smaller” approach of micro apartments affects local scene, keeping track of its popularity on the national front is a good idea for area real estate watchers. There's no denying it could point to a changing environment for our own Sussex County market for tenants, landlords and real estate investors.
If you have been surveying the current crop of investment properties, you don't have to be planning your own Sussex County micro apartments to make forward-thinking decisions. Call/text 302-228-7871 or email me, Russell Stucki, REALTOR ® of Beach Real Estate Market to provide detailed information on Delaware homes for sale, investment and commercial properties, luxury and waterfront homes, condos/townhomes, new construction, lots and land, farms and equestrian properties located in but not limited to Bethany, Bethel, Bridgeville, Dagsboro, Delmar, Ellendale, Fenwick Island, Frankford, Georgetown, Greenwood, Harbeson, Laurel, Lewes, Lincoln, Milford, Millsboro, Millville, Milton, Ocean View, Rehoboth Beach, Seaford, Selbyville, Delaware.