Considering purchasing a condo in foreclosure at 8750 Park Lane. How is this area? How well do condos hold their value?

Asked by Basudeb Chatterjee, The Trails, Frisco, TX Thu Aug 12, 2010

This property will be on auction and also qualifies for Homepath financing. I know this are is close to SMU, but it is generally safe? Do condos hold their value fairly well over time? I would probably live here for a couple of years and then convert to a rental.

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Anne Bokalo’s answer
Anne Bokalo, Agent, CANTON, TX
Thu Aug 12, 2010
Condos are like houses in going up and down due to the economy and available housing, That area has been in constant transition. Condos are good for a rental business because you can write everything off that is related, expenses, to that property. The negative side is that insurance is higher than your residence, and they cover less. Another thing to consider is that rental property is not taken care of by the renters,as we would like them to, which is hard on the property, even with high deposits. Students sometimes aren't ones that take care of the property. You will lose money in between renters in repairs and releasing expenses. The best bet is to buy low and rent high. Yes, this is from my personal experience as being a owner of a rental property for 13 yr... Best of luck!
0 votes
Ibrahim, Home Buyer, Dallas, TX
Tue Aug 14, 2012
I have a unit in that complex and its renting for $650, with some updates I did myself. As far a crime, Dallas is a different animal, I'm from Chicago and the bad areas are the bad areas, something interesting about Dallas that I've never seen before is that you can be in a bad area and go two blocks up the street and see 250k properties and two blocks from there back to a bad area. I have another condo right up the street from there leasing for $790. I will tell you some of the complexes are bad in that area but they are shaping that area up big time. Check it out, If I had the cash I would buy this unit you are referring to but it will all depend on the final price, the numbers have to work. I think I made a good choice with this unit, the HOA is low as well.
0 votes
Cyndie Gawain, Agent, Dallas, TX
Thu Aug 12, 2010
Wow, you have already gotten a lot of responses. I would just add that while condos are often poor choices for rentals because of HOA dues, if you buy it right, you can still cash flow even with an HOA. Have an agent research what you could rent it for or check through Craig's list to find a comparable property. Pay attention to what the first agent said about the area!
0 votes
Eric Holmes, Agent, Dallas, TX
Thu Aug 12, 2010
Dave,

Here's an article on the most violent crime areas in Dallas: http://cbs11tv.com/local/Dallas.Violent.Crimes.2.925124.html. The address that you've referenced is just east of the #1 most violent intersection in Dallas according to this story.

That being said, I used to play softball in the area and I never felt threatened by any means but we were there 2 hours at a time.

CrimeReports.com is a nice resource for crime stats in Dallas. It's google maps meets Dallas crime statistics.

As far as resale is concerned, according to an NAR study: "Seventy-eight percent of home buyers purchased a detached single family home." That leaves 22% for condos, town homes and the rest. It's a niche market, but they're bought and sold every day in Dallas.

Let me know if you have any other questions.

Best regards,
Eric Holmes | REMAX DFW Associates
Eric@TeamHolmes.com
0 votes
Bruce Lynn, Agent, Coppell, TX
Thu Aug 12, 2010
Dave,

Condos in Dallas rarely work well as rentals. The HOA dues are too high to make it work right. Of course this depends on what your purchase price is and the HOA dues and the rent function. There are only a handful of condo developments that my investor clients have ever been interested in and normally they have very low HOA dues.
Another trick is exit strategy.....how do you get out? It is tough to get financing on condos these days and then double tough on properties less than $50,000. So you perhaps can pay cash, but who is the most likely buyer when you sell and how will they finance?
Another trick is do you really want to rent to students. That's a whole different ballgame. Certainly there is a market, but some of the challenges are 9month leases, damage, guarantees, roommates, and higher turnover.
Just a few thoughts.
Web Reference:  http://www.teamlynn.com
0 votes
Ronda Allen, Agent, Plano, TX
Thu Aug 12, 2010
The condo market in Dallas is a mixed bag, as you can tell from the responses. The amenities of each and the HOA dues/bylaws vary greatly. It isn't a purchase to rush into. And, yet, there are some buildings where speed-to-contract is critical. Believe it or not, this isn't an area just made up of college students due to it's proximity to SMU. There are many homeowners who look to downsize within this area when that time in their life arrives, and they like the comfort of moving into a condo environment in the same vicinity where they once owned a single-family home.
Have a blessed day!
Ronda
0 votes
Becky Carr, , Dallas County, TX
Thu Aug 12, 2010
Agree with what everyone has said so far. Leasing is a good market right now. Condos are more difficult to sell right now. That said, I would buy it and lease it sooner rather than later and plan to sell it in a few years when the market is back up and when you've had a chance to really improve it and add upgrades.

If you need a REALTOR to help you navigate the foreclosure/short sale market, let me know!

Becky Carr
Coldwell Banker APEX
214-918-1686
beckyc@coldwellbanker.com
0 votes
Mary Beth Ha…, Agent, Dallas, TX
Thu Aug 12, 2010
This area is full of condos and rentals, there are no single family homes anywhere close. The area had been depreciating for many years as far as sales are concerned but as a rental market it is fairly good. This complex is close to the DART rail line and not far from a DART station which makes commuting easy for a tenant.

Patricia made the comment that you coould not manage your own rental property. That is incorrect, anyone can manage their own rental properties if they choose. You can enlist the services of a rental management company if you choose. '

Make sure you have done your due diligence in looking at the comparable sales in the area. Not all foreclosures are a good deal.

Mary Beth Harrison
The Harrison Group
Keller Williams Realty
214-365-6500
mbh@DallasNative.com
Web Reference:  http://www.DallasNative.com
0 votes
Dallas Texas, Agent, Dallas, TN
Thu Aug 12, 2010
Professional code of ethics prevents any Reatlor make a comment HOWEVER can direct you to resources

1. Dallas Police Department website for crime
2. Media or news broadcast for area search via zip code.

Many auctions UNLESS you are an investor use to all the particulars can loss of money... best to educate yourself . You can't return a home that you purchased at auction.

Here is a link of number of articles I have published :

http://www.lynn911.com/Web/AR287090/CustomContent/index/5009853

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes
Patricia McC…, Agent, Dallas, TX
Thu Aug 12, 2010
Condos are a depreciating asset. With that said, if you are considering owning it for the long haul and use it as a rental property - it might work for you. Just keep in mind that being a landlord costs money. You have the upkeep, management fees if you cannot maintain the property yourself, and the general fees associated with homeownership. Run your numbers and see where that puts you.
0 votes
AV, , Dallas, TX
Thu Aug 12, 2010
it would be a great rental, but condos may be tougher to sell.
0 votes
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