$189,000

Welcome to 125 East Lake Street, a rare opportunity in the heart of rapidly growing Middletown, Delaware, offering exceptional flexibility for an owner-occupant, investor, or buyer looking to create long-term value. The property offers a potential six-bedroom, two-bath single-family configuration with generous space for bedrooms, home offices, guests, or flexible… Read More living areas. Even more compelling is the property's 23R-2 zoning. Middletown's R-2 district allows one- and two-family residential uses, and the Town provides a Conditional Use process for conversion of an existing one-family dwelling into multiple dwelling units, subject to Town approval and all applicable lot area, floor area, parking, property condition, permitting, registration, and inspection requirements. Subject to approval, the existing layout presents the potential to create two separate 3-bedroom, 1-bath units. For an owner-occupant, this creates an appealing potential ''house hack'' opportunity: live in one 3-bedroom unit while renting the second and use the rental income to help offset a portion, or potentially a substantial portion, of the monthly mortgage and ownership expenses. Investors may instead explore operating both units as long-term rentals following all required approvals. Location adds another layer of value. Downtown Middletown and Main Street are just blocks away, placing shopping, dining, entertainment, services, schools, and everyday conveniences close to home. The downtown business district includes dozens of shops and service businesses, along with restaurants, pubs, breweries, and entertainment venues generally within about one mile. Within approximately five miles, the greater Middletown trade area offers hundreds of businesses and dozens of restaurants, bars, breweries, shops, grocery stores, services, and national retailers. The investment story is strengthened by Middletown's continued residential and commercial growth. U.S. Census estimates place the town's 2025 population at approximately 25,800, up about 11.2% since 2020. New retail, office, residential, and mixed-use development continues throughout the area, including major projects such as Bayberry Town Center, adding shopping, dining, services, office space, housing, and employment opportunities. Commuters also benefit from easy access to DE-299, US-301, DE-1, US-13, and connections to I-95, providing convenient regional travel throughout Delaware and the Mid-Atlantic. DE-1 offers access north toward Christiana, Newark, Wilmington, and the I-95 corridor and south toward Dover, while US-301 provides connections toward Maryland, Baltimore, and the greater Washington metropolitan region. Philadelphia and surrounding employment centers are also accessible through the I-95 corridor. Middletown's location between northern and central Delaware gives residents access to multiple employment markets and major commercial centers. Whether envisioned as a spacious six-bedroom single-family residence, owner-occupied house hack, potential two-unit rental property, or value-add investment, 125 E Lake Street offers a compelling combination of space, location, zoning flexibility, highway access, nearby amenities, and future income potential. Two-unit conversion and all proposed uses are subject to Town of Middletown approval, permits, parking requirements, inspections, registration, and buyer verification. Read Less

Courtesy of Michael Mulski, Crown Homes Real Estate 302-504-6147

Listing Snapshot

Days Online

Last Updated

Oct 8, 2026

Property Type

Single Family Residential

Beds

Full Baths

Square Ft.

1,675

Lot Size

0.11 Acres

Year Built

1910

MLS Number

DENC2112358

Additional Details

Building

Built in 1910, Living area: 1675, Levels: 2, Construction Materials: Vinyl Siding, Aluminum Siding

Cooling

None

Accessibility Features

None

Heating

Baseboard - Electric

Lot

0.11 acres, Dimensions: 40.00 x 116.00

Property

Other structures: Above Grade, Below Grade

Sewer

No Septic System

Taxes

Annual Amount: $2,316, Lot: 050, Year: 2025, Zoning: 23R-2

Utilities

Water Source: Public

Find The Perfect Home

'VIP' Listing Search

Whenever a listing hits the market that matches your criteria you will be immediately notified.

Join The List

Mortgage Calculator

Selling price

Down payment

Term (years)

Interest rate (%)

Monthly Payment

Buyers

Life on the Shore

Sellers

About

Buyers

Life on the Shore

Sellers

About

125 E LAKE STREET

'VIP' Listing Search

Schools In The Area

Similar Listings

Find My Dream Home

1. Neighborhoods

2. Home Type

3. Send

Buyers

Sellers

About

Contact