Cedar Hills Condo (Raleigh: real estate, renters, HOA)

[MontgomeryN]

Hey All,

First post here... planning a move up to Raleigh from SoFlo (but originally from Brooklyn, NY).

Found some relatively good priced homes in the Cedar Hills Condo Complex.

We are a family of three with a one year old son. We see that the Condos are zoned to a relatively good public school.

The condos are also on the edge of what I understand is a growing real estate zone (Midtown).

So what gives with the prices for these condos?

Trulia lists that immediate area as "low crime."

Is that a flop? Should we not move there with our little one?

Thanks in advance!

[MikeJaquish]

I wouldn't be terribly fearful of the area, but I also would probably be more interested in one of the townhome style units, rather than one of the flats.
If you are financing, make sure the complex is FHA warrantable, or that your lender has alternate options if it is not.

[MontgomeryN]

Thanks so much for your response!

We are actually looking at a townhome unit.

Why do you mention the FHA warrantable option?

Also, are you familiar with Walden Pond condos? How do these two complexes compare?

[MontgomeryN]

Also, I now see that you are a real estate broker... do you envision this area increasing in value as the surrounding area has?

[MikeJaquish]

Originally Posted by MontgomeryN

Thanks so much for your response!

We are actually looking at a townhome unit.

Why do you mention the FHA warrantable option?

Also, are you familiar with Walden Pond condos? How do these two complexes compare?

If FHA will not back the mortgage, the unit becomes less liquid, i.e., a bit harder to sell.
Often, that is due to low reserves, or to a very high Non-Owner Occupant to Owner-Occupant ratio.
We owned a couple of condos in Driftwood Manor, at similar price points. Over 75% rental units, and could not get conventional financing at that time.

I think you will find that there is a high rental base in Cedar Hills Condos.
Ask about any assessments for repairs to the properties, or other infrastructure work.
Already, the dues are in the $200/month range.
And, make sure that any unit you buy is available for immediate occupancy, and not under lease that you cannot get in for months.

I guess I like Cedar Hills better than Walden Pond. Surroundings and location.

Note that neither complex has had appreciation in value, if appreciation is part of your plan.

[route66]

Originally Posted by MontgomeryN

Also, I now see that you are a real estate broker... do you envision this area increasing in value as the surrounding area has?

I see the midtown area not getting any cheaper anytime soon, but my guess is that you won't see wild appreciation on these units, probably ever.

I looked up one unit online, the price struck me for too good to be true given the interior, it appeared to have granite counters, stainless appliances and generally looked in good shape. The exterior of the complex in general looked in bad shape to me in the photos I saw, which of course could be an indicator of a do-nothing HOA, or a HOA membership that just doesn't want to spend to keep the place up.

And, while I'm not claiming to be knowledgeable about these matters, as a buyer I would think that in order to see big appreciation that takes advantage of the location, the exterior complex and grounds would need to be upgraded to "North Hills standards" at some point, and that's not likely to be cheap on a complex from 1972, so I would think the HOA dues would need to rise substantially. And, if it's inhabited mostly by renters and folks concerned more with the price of rent, it seems less likely a major reno like that would be voted in.

So my guess would be you're either left with non-upgraded property that can't appreciate, or upgraded property that appreciates but result in higher fees, and unlikely a single family home you won't be able to choose between aside from perhaps getting involved in the HOA board and influencing the matter, if that's even possible.

I doubt you'd have too much to worry about crime there, other than maybe occasional car break-ins or the stuff that can happen anywhere. You could probably only get a feel for what potential neighbors are like by visiting and spending some time walking around.

[lepoisson]

My parents live near there. It's not a bad area, but it's not great either. Like someone else said, there are a lot of rentals.

[fscottfitz]

I would not move there with my child. I don't know if this is still the case, but shady business used to happen there years ago. They are zoned for a fanastic elementary school though, but that could change by the time your child starts Kindergarten.