Aliasforpost…, Home Buyer in Dallas, TX

Condos for less than the price of a car in Dallas?

Asked by Aliasforposting, Dallas, TX Wed Jun 16, 2010

I see listings for condos in Dallas for under 30k. I have to assume something is drastically wrong-- but I do wonder what the deal is with places like that.

Are the condo associations bankrupt? Is the building about to fall down? Rampant crime? All of the above?

Is there any potential at all for such an inexpensive place? Rental income perhaps?

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Amanda Searcy, Agent, Dallas, TX
Wed Jun 16, 2010
BEST ANSWER
There are numerous condos for sale under $30K. I actually saw one go under contract last week with the listed price of $8,000. Yes, $8,000. And it wasn't a horrible place either - I was curious enough to check it out for myself! Just like with any other property - it is the buyer that determines the current market value. The condos are (hopefully) priced according to a comparative sales anaysis performed by the listing agent. So, if all the other comparative condos in the area are selling for around $20K, then that is where the listed price range is going to fall.

To specifically address your questions about potential negative aspects with these properties - all I can say is that a bankupt HOA, a failing structure or a high-crime area are all very possible scenarios. You can find out that information by a) getting the seller's disclosure/performing an inspection b) requesting the resale certificate from the HOA and/or c) pulling up the crime stats on the city's website. These are all factors that would affect value/pricing. I think that there's potential with just about every property - it just depends on numerous factors that can be easily analyized by a buyer and their agent before actually placing an offer. Hope this helps!
0 votes
T.E. & Naima…, Agent, Dallas, TX
Wed Jun 16, 2010
Yes, I would be a little skeptical myself.
TCO (total cost of ownership) is different for any property with an association. For a moment delve into the financial side and understand that a monthly P+I (principal and interest) payment of $53.20 is what you pay on a $10,000 loan for 30 years.
If the association charges $190/mo to live there, it's like buying the place for $40,000 more than the list price.
Granted, it's not just a blind payment for nothing, associations do some things besides collect money. For example, they run the pool in the complex, they trim the grass and pay for outside watering, they tell your neighbors to pick up clutter and not to park in prohibited zones (and you, too), but you have to add up the value you think that's worth each month and compare it to the $190.
If you can find $100 a month worth of services they provide that you want, then the $90 is waste and basically is like paying almost $20,000 more for the condos than living somewhere else without an association.

Is crime an issue? Yes, frequently security at condos is an overriding concern. Well secured properties are more desirable and so they're higher priced. You can invest in the Yugo-class property and work with the board on securing the property, running the drug dealers out of the parking lot, keeping the thieves from jumping the fence and so on. Your efforts will result in happier neighbors, and better value on your own property.

Some associations do collect but then don't re-invest. You can easily tell these from the others by eyeballing the property carefully.

My rule is I don't invest in a place I wouldn't live in myself.
Web Reference:  http://www.SumnerRealty.com
0 votes
Pelin Guzel, Agent, Dallas, TX
Wed Jun 16, 2010
Aliasforpost,
There are a lot of great deals in Dallas nowadays. Condos are in good price because it is really hard to get a loan this small amount of the sales price. The best thing is to go there and see the condos and area by yourself. We can easily reach the lease statistics if you are interested in any place. These type of condos are great investment opportunities for cash deals. Let me know if you are interested in, I will be happy to help you in anyway.
Here is a good website that you can search active homes/condos in Dallas area http://www.dallashomelist.com

Sincerely,
Pelin
0 votes
Dallas Texas, Agent, Dallas, TN
Wed Jun 16, 2010
It depends on you overall business plan for real estate investments. Majority of major cities across the USA if a condo OR home is less than purchase price of a home IN MOST instances in high crime district of city can have families move in.

Prices are drop generate interest in those areas

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
Mary Beth Ha…, Agent, Dallas, TX
Wed Jun 16, 2010
There are some really good deals on condos in the Dallas area. There are several reasons for this, it is often hard to get loans for condos especially if the buyer is trying to use FHA financing. The complex has to be 70% owner occupied and one person or entity cannot own more than 10%. If a buyer can pay cash they are in great shape to pick up some good properties to either live in or use as rental property. A buyer or investor needs to be careful to analyze the home owners association to make sure there is ample money to keep it in good condition and that there are no imediate assesments in the works that will raise the HOA dues.

Let me know if I can assisit you in purchasing a condo in Dallas

Mary Beth Harrison
The Harrison Group
214-365-6500
mbh@DallasNative.com
Web Reference:  http://www.DallasNative.com
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