Wilmington flips are mostly brick: century-old rowhomes and twins with plaster walls, slate or flat roofs and tired mechanicals. The profit is in the rehab, and the risk is in the budget and the transfer tax most out-of-state flippers forget.
In short: LendingStreet funds fix and flip loans on 1-8 unit investor rehabs in Wilmington and New Castle County, from $150,000 to $5M+, up to 90% of cost and up to 100% of rehab on some programs. Loans are short-term and interest-only and can close in as little as 10 days. The exit is a sale or a refinance into a DSCR loan if you decide to keep the property as a rental.
Most flips in the city are two- and three-story rowhomes in neighborhoods such as Little Italy, Union Park Gardens, Forty Acres, Bayard Square and the Triangle, where finished homes sell to buyers who work downtown, at the hospitals or along I-95. Lower-priced blocks in Hilltop and Hedgeville offer more room on purchase price but a thinner pool of retail buyers, so resale comps matter even more.
Outside the city, Brandywine Hundred, Claymont and Elsmere have 1950s and 1960s ranches and splits that flip on a cosmetic-plus scope: kitchens, baths, flooring, windows and HVAC.
Newark, Bear and Middletown add a different flip profile: newer suburban homes with lighter scopes and a deep buyer pool of families and university staff. Margins can be thinner, but days on market tend to be shorter when the finish level matches the neighborhood.
Older brick homes hide costs. Budget for these before you lock the purchase price, and get contractor bids rather than relying on a per-square-foot rule.
Add a contingency of at least 10% to 15% on older city homes. Opening a plaster wall in a 1910 rowhome often reveals more than the walkthrough did, and a budget with no cushion turns a small surprise into a missed draw.
This example is illustrative and not a quote. An investor buys a rowhome for $165,000 with a $85,000 rehab budget and an after-repair value of $340,000. The loan funds 80% of the purchase, $132,000, plus 100% of the rehab through draws, for a total loan of $217,000, about 87% of total cost.
Estimated interest-only payments are about $1,899 a month once the full rehab is drawn, or about $11,392 over a 6-month hold if the full balance were outstanding the whole time. The table assumes about 2% buyer transfer tax at purchase and 2% seller transfer tax at sale, plus 6% selling costs and $9,000 of other holding and closing costs.
| Item | Amount |
|---|---|
| Purchase price | $165,000 |
| Rehab budget | $85,000 |
| Loan amount | $217,000 |
| Interest over 6 months (estimated) | $11,392 |
| Transfer tax, buy and sell (estimated) | $10,100 |
| Selling costs and other costs | $29,400 |
| After-repair value | $340,000 |
| Estimated profit before income tax | $39,108 |
| Approximate cash in at closing | $45,300 |
Delaware's realty transfer tax commonly totals about 4% of the price, often split between buyer and seller. A flipper pays a share when buying and a share when selling, so on a short hold it can take a real bite out of profit. Run your numbers on both sides of the trade, and confirm the split in your contract with your Delaware closing attorney.
Wilmington has local historic districts, including Quaker Hill and other designated areas, where exterior work such as windows, doors, masonry and facades may need design review. Interior work still needs city building permits through Licenses and Inspections.
Build permit time into the schedule. A rehab that stalls waiting for approvals keeps accruing interest, and our draw process releases rehab funds after inspections confirm completed work.
Rehab money is held back and released in stages. You complete a phase, request a draw, an inspector confirms the work and funds are sent. Keep enough cash to front each phase, and line up your contractor's schedule with realistic draw timing.
Some Wilmington rowhomes make better rentals than flips, especially in neighborhoods where rents are strong relative to resale prices. If the resale market softens, you can refinance into a DSCR loan, qualify on the new rent and hold. Check the city rental license requirements before you choose that path.
On a 2-4 unit conversion, the DSCR exit counts the combined rent of all units.
Write down both numbers before you buy: the price you need at resale and the rent you would get if you held. If either one works, the deal has a backup plan.
Leverage and pricing on a flip loan depend partly on your track record. Investors with several completed flips can often get closer to the program maximums, while a first flip may need more cash in the deal. Keep a simple list of past projects with addresses, purchase and sale dates, rehab costs and sale prices, since that list speeds up underwriting.
If you are new, partnering with an experienced contractor and choosing a modest cosmetic scope in an established neighborhood makes the file easier to approve than a gut rehab on a block with few retail sales.
Send the address, purchase price, rehab scope and your ARV comps. Note your flip experience, since it affects leverage. Our investor loans are business-purpose loans on non-owner-occupied property. Call (877) 298-1001 or use the form below.
Up to 90% of total cost and up to 100% of the rehab budget on some programs, depending on experience, the property and the after-repair value.
In as little as 10 days when the title work, insurance and your documents are ready.
Usually a share of it, since Delaware's transfer tax is commonly split between buyer and seller by custom. Check your contract and confirm with your closing attorney.
Yes, but exterior changes may need design review in addition to building permits. Plan for that time in your schedule.
No. Rehab funds are released through draws after inspections confirm the work is done.
You can refinance into a DSCR loan and rent it, if the rent supports the payment and the property meets city rental rules.
Yes. We fund flips across New Castle County, including Brandywine Hundred, Claymont, Newark, Bear and Middletown, and throughout Delaware.
Yes. More completed projects usually means higher leverage and better terms. First-time flippers may need to bring more cash.
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