1.How much do homes cost in Rehoboth Beach? Homes in Rehoboth Beach in the first three blocks from the ocean are not always available, but when they are the price ranges from $450,000 up to well over a million dollars for a nice home on the ocean. Oceanfront homes are from old to new, from small to quite large so the price can be two or three million and more for the largest and nicest homes right on the beach. Smaller and older homes on the beach are sometimes removed after purchase and replaced with nicer and larger homes. Years ago there were more severe height limitations in Rehoboth. Now, you can build up to 42 feet high. Parking in Rehoboth is difficult so many folks are smartly using the entire ground level of the land for parking and putting up two and three story homes above an enclosed parking area. From the third block away from ocean to the sixth or seventh block back; homes are far more affordable and can range as low as $300,000 or even less for smaller, older, less well maintained homes. Condos and Townhomes can be below $200,000 but not for long. 2. Rehoboth has an active and profitable rental market. However, the rental income from a property is not likely to support the purchase price entirely. A good rule of thumb is that a property should obtain from 4% to 6% of the purchase price per year in rental income with good management. If you run the figures, that means that you may need to put down at least 30% of the sales price in order to get the property to financially carry itself the first year. Many people rent the properties out full time at first. Rental incomes generally increase about 3-5% per year. After a few years a property will not only carry itself but can be have one or two weeks left vacant for the free use of the owner. Those who have owned Rehoboth Beach Properties for 5 to 10 years will find that they get free summer rentals for themselves and positive cash flow rental income as well. Recently some very savvy investors have purchased numerous homes with 30% down payments, fixed up the properties to make them far more updated and attractive and rented them out the very first year at a profit even considering the fix up expenses. Very few owners rent out their homes in the off season, but those who do can nearly double the rental income from their properties. Every year our off season rental demand is growing but even though the weekly rates are lower, the few owners who make places available can sometimes keep them full almost every week from September to June as well. We have the movie festivals, music festivals, art festivals, sidewalk sales, Thanksgiving, Christmas, New Years, Easter, and numerous other special weekends that fill nearly all available homes as more and more people learn the value of our cooler seasons and our tax free shopping. Most folks after they have visited here in the warm months achieve a high appreciation for our less crowded and often more aesthetic off season months as well. In fact most locals don't even come to Rehoboth until after the main tourist season. Every year, more and more places are staying open and profitable year 'round.

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