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I am looking at PhD programs at UNC Chapel Hill and Duke - probably not until fall 2012. I have what might be the impossible dream - I would like to buy a home that is probably 1000 sq ft at least that needs work, but livable while I work on it. I love old houses and will be leaving a Victorian home I have owned for 20 years. (I am an older student.) But I would also like to find something closer to 80K - so I can pay cash for it. Ideally in Durham. And, like everyone, want to be in a safe area (single female) - I do have two four-legged kids - Delilah the cat and Clancy the challenge child Border Collie /Husky mix.
You can find a house for $80k in Durham, but it will require some work. Some neighborhoods that are good for students (i.e. close to Duke) where you can find that include Burch Avenue (homes will need significant work), West End, Tuscaloosa-Lakewood, Old West Durham (again, homes will need work), and Morehead Hills (probably too expensive).
If you don't mind biking a few miles, then other areas you can look at include Old North Durham, Golden Belt, and Cleveland-Holloway. These areas do have higher crime rates than other parts of the city, but I know many grad students that live in these neighborhoods and love it.
$80k is not that much these days in Durham. If you wanted to spend up to $150k, then you can get what you want (close to school).
You might check Parkwood in Durham. It was built in the 60's, the first subdivision in the state, I believe. Anyway, it's near Hwys 54 & 55, has a lake, park, elementary school, fire department, baseball field & convenience store. I just saw a house in the range you're looking for too.
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