Despite having a relatively small population of less than a million people, Delaware is still known to produce a decent number of house flips every year.
The First State boasts respectable average home values and a solid median household income of $65,627. The vast majority of homes in Delaware were built before the year 2000. In fact, over 30% of all homes were built before 1969. This is good news, because it means there are plenty of homes that could be transformed with well executed renovations.
Now let’s take a more in-depth look at how to flip houses in Delaware.
Delaware House Flipping Stats
Median Purchase Price
Median Resale Price
Price Per Square Foot
Delaware Population Size
Median Household Income
High School Graduation
Travel Time To Work
Best Cities for Flipping Houses In Delaware
Safest Areas in Delaware
- Ocean View – Safety Score: 92.22
- Bridgeville – Safety Score: 88.76
- Clayton – Safety Score: 88.14
- Milton – Safety Score: 86.11
- Elsmere – Safety Score: 84.02
Please note – All the statistics in this article are based on 2020 data. You can view the data sources at the bottom of the article.
The Basics Of Flipping Houses In Delaware
- Find a property in Delaware that is undervalued
- Source funding from a reputable lender
- Buy the property for a price that makes it possible to generate profit when it is resold
- Complete renovations that will increase the after repair value
- Find buyers for the property and sell it for a healthy profit margin
How To Find Houses To Flip In Delaware
1. Use FlipScout By New Silver
2. Leverage The Power of Wholesalers
Finding a good wholesaler can be very rewarding for a property flipper. Wholesalers tend to have access to all the most relevant property databases, and they often have unique personal networks. By using a wholesaler, you effectively gain inside access to their knowledge of properties in Delaware.
3. Attend Bank Auctions
Bank auctions often present opportunities to purchase properties below their market value. This is mainly because banks hold these auctions in order to sell the properties as fast as possible. If you attend bank auctions with a clearly defined strategy, you can potentially walk away with a new property that fits in perfectly with your investment portfolio.
4. Use Direct Mail To Find Off-Market Properties
Although it is considered an old school technique, direct mail can still yield positive results for house flippers. Direct mail has been shown to have a higher response rate than email, and numerous studies have shown that people actually enjoy checking their mailboxes. More importantly, you might be surprised by how many people have considered selling their homes. Your letter could be the trigger that they have been waiting for.
5. Sign Up To The Multiple Listing Service (MLS)
Even though MLS listings can be competitive, it is still a good avenue for finding properties to flip. The MLS is literally a database created by real estate agents, and it is filled with property details and statistics that can help aid your research process. There is a fee involved, but one deal is all you need to comfortably cover the costs.
6. Find Foreclosures
When properties fall into foreclosure, the primary goal of the loan originator is to recoup any potential losses. This is good news for house flippers, because properties in foreclosure often sell for less than their market value. If you are able to identify foreclosure opportunities, there’s a good chance you will be able to purchase a property in Delaware for less than its market value. This is why foreclosure can serve as a great platform for a potential flip.
Delaware Housing Market Analysis
Investors Are Choosing Mid-To-Low End Properties In Good Areas : There is a big gap between the median home value in Delaware ($281,823) and the median resale price for house flips in Delaware ($246,850). This suggests that investors are generally focusing on the mid-to-lower end of the market where it might be easier to find poorly maintained houses that have the potential to be renovated.
It’s also worth pointing out that property flippers in Delaware are generating approximately $79,030 in revenue per flip. To achieve results like these, selecting the right property is key. Experienced flippers know how to transform the after repair value of a home, by focusing on renovations that are known to increase resale value.
Home Values Have Appreciated By 8.7%: According to Zillow, home values in Delaware appreciated by 8.7% over the last year. Moreover, property prices have been steadily increasing since late 2012.
Despite taking a small dip when covid-19 first arrived in the US, the Delaware real estate market has responded well since then. Historically low interest rates have increased demand for homes, while the supply of houses hasn’t increased proportionally. This is a recipe for continued home appreciation, at least in the short term.
There Are Lots of Single Family Homes: Of the 357,765 homes in Delaware, approximately 58% are single family homes. In other words, house flippers are more likely to find a home which meets their investment criteria by concentration on the single-family market.
There Are Plenty Of Houses That Could Potentially Be Upgraded: Of course not all of these houses will be on the market, but you can still use clever marketing techniques like direct mail to open up the possibility of a sale.
The underlying message is that over 70% of homes in Delaware were built before the year 2000. Older homes tend to require more upkeep than modern homes, and you could potentially capitalize on this fact when conducting your initial property search. In essence, applying a ‘home age’ filter to your final prospect list can help vet out properties that are too new to require any major renovations.
Apply For An Investment Property Loan
If you’re ready to start your house flipping journey, New Silver Lending can provide the capital you need to fund your first flip. We offer ultra fast hard money loans with competitive interest rates and quick closing times. The entire application can be completed in less than 10 minutes.
If you’re committed to flipping houses in Delaware, the next step is to invest time and energy into finding the best possible property. We have outlined a number of methods in this post, and all of them can potentially bear fruit.
Once you have identified a property, using a reputable Hard Money lender like New Silver can help accelerate the house flipping process. Our company is built on speed, efficiency and user-friendly technology. The online application can be completed in less than 10 minutes, and we offer instant proof of funds letters to all of our clients.