Property Q&A in Lewes>Question Details

Keith Wilson, Home Seller in Elizabethtown, PA

I am looking for input on the Five Points community. Is this a good area for vacation unit or investment prop?

Asked by Keith Wilson, Elizabethtown, PA Wed Feb 18, 2009

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This question is about this property: http://www.trulia.com/property/1073474056--VILLAGES-OF-5-POI…

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Five Points is a great location and wonderful for an investment property. Everything your renters will need is located right in the community. Why drive for those vacation essentials when you can go for a leisurely stroll to the local stores. Walk to the numerous restaurants and coffee shop. Then take a short 5 minute drive to the beach on the bay or a 10 minute drive to Ocean shoreline in Henlopen State Park.
0 votes Thank Flag Link Sun Sep 20, 2009
Hi Keith,
Great community which is part of the former Governor's livable Delaware initiative. The community is all inclusive, 6 restaurants, grocery store, drug store, pool, tennis, walking paths, video store all with-in walking distance. The community is located a little too far from the beach for seasonal investment but would make an affordable second home a 10 minute drive to the beach.
Chris Kavanagh
Coldwell Banker Residential Brokerage
Bethany Beach, Delaware 19930
302-829-9068
chris@5starbeachhomes.com
0 votes Thank Flag Link Wed Feb 18, 2009
Keith, The Villages of Five Points is OK for an investment group but no so great for vacation unit. You most likely will get a long term or month to month rental but not weekly rentals and the monthly rent would not cover the mortgage payment if your were to use 70% LTV. Also there is an abundance of inventory right now and I don't see any appreciation in the near future in Five Points. You might consider something closer to Lewes Beach where the inventory is low and the demand is more abundant with weekly rental income that you could use as a deposit and personal use of 2 weeks of the year and still carry it as an investment property. Depending on your investment objective, prices can vary from $600,000 up to $3 Million with great weekly summer rental income and off-season income as well. I do investment analyses on microsoft spreadsheets and would be happy to share them with you. Nick Carter, Associate Broker, Jack Lingo Realtor, Lewes, DE
Web Reference: http://www.228Nick.com
0 votes Thank Flag Link Wed Feb 18, 2009
Personally, we think it's a good area for a vacation unit (we have family and friends close to there, as well as ourselves) - close to the beaches, but away from the traffic.

If you are talking about an investment property that rents year round, we can look at the numbers with you and see if it can work for you - you'll most likely be carrying it each month depending on % down, etc, however, whether that is an issue or not depends on your goals. Are you looking to purchase it for yourself in the long haul, and just want help carrying it for a few years? Or are you strictly an investor looking for deals with positive cash flow. Or are you carrying assuming you'll gain appreciation over a certain time period? As for a seasonal rental, it's not a location that would be a hi-rate seasonal rental because it is not directly accessing water or walking distance to such amenities.

If you would like to discuss further to bounce some ideas around, we're here at 302-740-5872 - we're investors too and have worked with many investors. It's a good time to look at that second home or investment properties with the market conditions - you're on the right track.

Regards,
John & Mary Luca
Web Reference: http://www.TriStateTeam.com
0 votes Thank Flag Link Wed Feb 18, 2009
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