Lower budget, close to downtown and safe? Can it be done? (Dallas: real estate, apartment)

[Kaybee3]

My family and I are planning to move to Dallas next spring or summer (2011) so that my husband can finish school. We're doing our research now so that we can consider housing options, in the event that we're able to move sooner.

I've spent hours reading threads on this forum to narrow our search -- you all are a wealth of information. Based on what I've read, it seems like we would find appropriate housing possibly in Richardson, Garland, or inside Dallas proper (northeast area?). I've looked at Dallas addresses with Richardson ISD as well as Lake Highlands, Lakewood, and closer in to downtown (seems slightly scary). We may be priced out of these areas, though. I am specifically concerned with finding a safe area for our family.

I would truly appreciate your insight into specific good neighborhoods and areas for us AND any areas to avoid. I've seen people recommend Richardson Heights, Lake Highlands (specific neighborhoods?), Mt. Auburn (for low budget -- though some think it's a scary area there)...neighborhoods in Garland (not sure about specific ones in our budget?) Do you have any recommendations for other areas?

Here are our specific considerations:

-- Low budget, in the 100-150 range. We're not new homeowners, but our income will be reduced considerably with a spouse in school. We know this prices us out of many areas. Despite the high property tax, we feel that we can save money by buying a cheaper place outright w/cash instead of throwing down rent money for the 3-5 years we're in the area.

-- Small children, not yet school age (but soon!). Homeschooling is an option for us.

-- Shorter commute/public transit. School is downtown Dallas. The closer we live, the better. We do not want an hour commute. We'd love to be able to take DART.

-- Simplicity. We're fine with an older house (likely a necessity due to our price range). We're fine with remodeling and fixing something up, within reason (no tearing down and starting from scratch). We don't care about nightlife or being on the cool side of town. We'd love mature trees. We're fine with walking places, although we don't have to. It would be nice to have library/parks close by with young children.

--Safety. Perception of safety is one thing, and actual property and personal crime is another. An area may not actually be that crime-ridden, but if it feels super spooky to me, I'll be less inclined to go on walks and get my kids out of the house like I should. At the same time, I don't mind being stretched out of my comfort zone.

Thanks very much for your insight and recommendations.

[momof2dfw]

Yes, it can be done. Based on your criteria I'd stick w/ the Richardson Heights or Lake Highlands area. You should be able to find a modest home in your price range. It would be convienent to DART rail as well as the option to drive downtown if need be without it being an hour. Both areas have ample parks, mature trees, neighborhood pools, recreation centers and libraries within walking distance as well as very good schools and PLENTY of families w/ school aged children active in the community.

[Kaybee3]

That makes sense. Would you be able to help me out with the boundaries of Lake Highlands -- not sure where it begins and ends. I know it's on the east side of the lake.

[TurtleCreek80]

With your budget AND 3-5 year timeline, I would rent. You're going to be able to afford a safe neighborhood with a rent budget of $1500 (amount you would have spent on mortgage + insurance + taxes.

Real estate is not quite steady in Dallas- things were starting to go up, but after the First Time Buyer tax credit expired, things have almost stalled completely in some areas. I would not count on breaking even in 3-5 years (after paying closing costs and realtors commissions). I think buying - anywhere- right now on that tight a timline is a HUGE financial risk.

[TurtleCreek80]

Originally Posted by Kaybee3

That makes sense. Would you be able to help me out with the boundaries of Lake Highlands -- not sure where it begins and ends. I know it's on the east side of the lake.

LH is actually north of the lake. Boundaries are Loop 12/Northwest Hwy, 75, and LBJ/635. You will be hard-pressed to find a home under $200k in LH.

[momof2dfw]

Originally Posted by TurtleCreek80

With your budget AND 3-5 year timeline, I would rent. You're going to be able to afford a safe neighborhood with a rent budget of $1500 (amount you would have spent on mortgage + insurance + taxes.

Real estate is not quite steady in Dallas- things were starting to go up, but after the First Time Buyer tax credit expired, things have almost stalled completely in some areas. I would not count on breaking even in 3-5 years (after paying closing costs and realtors commissions). I think buying - anywhere- right now on that tight a timline is a HUGE financial risk.

I have to agree to a point as when I read that I was wondering why the OP thought they would be moving in that amount of time. Don't know if they feel they would just automatically move out of the area all together at that time or feel the need to "move up". If it was just they THINK they might be ready to "move up" then buying would be okay as they might not be ready to at that time. If it is to move completely out of the area........ renting would make more sense.

I would NOT suggest any of the further out suburbs if they planned on moving in that short of time nor based on the criteria. However, if they stay with a more stable area like the ones mentioned, paid cash and did decide to move in 5 years then it would not be as bad and they could possibly make money on the deal. Also, it sounds as though they may have sold a house and would be using that money to buy and pay cash for this "new" house. With that in mind they might kind of NEED to buy because of their taxes. I'd rather take the risk of buying and not having to pay a big chunk to Uncle Sam and having to sell a house in a few years, imho.

[Kaybee3]

@Turtle -- appreciate the warning. It was my impression from reading that Dallas real estate was fairly stable despite the current economy, but if not, that's good to know. We don't plan on remaining in the area when school is done. I know life happens, but that's the plan now.

@Turtle -- gotcha about LH area. So what's straight east of the lake, then? I must be confused.

@momof2 -- you are correct. We're planning on paying cash, buying the house outright, so no mortgage.

We realize it's a risk to do it, and I'm not a huge risk taker in general. However, with buying in cash, we estimate we will save enough $$ that, even if we lose money when we have to sell, we'll be ahead compared to paying rent on the order of 18K per year. And with reduced income, it seems to make sense to us to cut out a mortgage/rent payment from our monthly expenses. But perhaps I am not considering all expenses into my reasoning. I know utilities will be in the mix, as well as insurance and taxes.

Hence our need for advice as to appropriate areas to consider! We're not afraid of fixing something up. But then, we'll still have to be able to sell it in the end.

[Kaybee3]

For our reference, what would $1500/mo get us in terms of renting? Can we rent a house for that, or apt? What size?

Thanks again for your advice.

[Lakewooder]

You could rent a house in 75214, 75206 or 75223 or a large duplex or apartment and then you could participate in Lakewood Early Childhood PTA Home to get a feel for things - who knows you may find a deal after a bit -but you are going to be very limited on buying any single family homes in those zips. It's possible with a lot of hunting and nosing around quite a bit after you get to know a few people - I've done it. Junius Heights might work if you like old houses (Craftsman Bungalows) and like to work on them. Also I have a few rentals for under that amount and one just at that amount in Lakewood Elementary. All full for now however...but that means I know it can be done.

Would probably not go for Mt. Auburn at this point - it's on the edge of but not in Lakewood Elementary. Cameron or Cristler streets next to Hollywood Heights is fairly safe. I thought a lot of that area would go tear-down and there have been some but I don't think that's going to happen until the next boom. Wo knows when that will be? OTOH Junius Heights is a good investment IMO with steady appreciation as the homes renovated in the historic district and more people learn about Lipscomb Elementary.

You could find a home on the east side of the lake in that range but I'm not sure exactly what to tell you about it ...

[lh_newbie]

Originally Posted by TurtleCreek80

With your budget AND 3-5 year timeline, I would rent.
...
I think buying - anywhere- right now on that tight a timline is a HUGE financial risk.

I second this recommendation.

Buying with that time line is not a good decision - I'd rent and preserve the ability to move should you need to for any reason. At the VERY minimum, I always recommend people rent when they don't know the metro for 3-6 months.

If you have $150K cash, you can drop it in Muni, earn 3-5% tax free and have the first $375-625 of your monthly rent paid for, tax free. (note: I'm not current with what munis are paying... just using a hypothetical)

Brian