Buying a Luxery Property in a bad neighborhood

[Leo Lopez]

Hey guys,

I wanted some advice. I’m deciding on putting an offer down on a luxury property that is priced at 250k in the local dallas market. The only problem is that this house is in a neighborhood that has some crackheads and prostitutes one street away and a line of houses that are torn down and boarded up. The crime map shows that no serious crime have happened in the last two years. Other than that it’s a new build 2020 and is a super modern 3 bed 3 bath two story home 1900 square feet. It’s 5 minutes away from downtown and 3 minutes away from the Dallas Zoo and about 6 minutes away from a bustling new business district. Is this a good investment. I’m hoping to hold onto it for about 3-5 years and hoping it appreciates once the nearby highway deck park (think klyde warren park) is built in the neighborhood. What do you guys think? This would be the first house in the neighborhood that sells for above 150k. It already has 3 offers.

TLDR: buying a luxury house in a bad neighborhood should I invest in the property and hope it appreciates in the near future once developments have finished?

Thank you in advanced

[Steve K.]

 I always try to buy the worst property on the best street I can afford, not the opposite. But I don't know this submarket specifically, sounds like maybe it's an up and comer. Depends on how confident you are in the new development and the area transitioning within 3-5 I guess.