Is Condo/Co-OP a good route in DFW?

Question

Hello BP, I am looking around to rent a one-bed apartment in Dallas, and seems the rent is gone through the roof last 6-12 months. Is buying a small condo/co-op a better option than simply renting out an apartment? I am seeing on Zillow some condo-co op are listed under 100K. (ZIP 75231). HOA fees don't seem too bad. Is it a good option to explore?

Bruce Lynn · Answer

No Co-op that I know about in DFW area.

There are condos.

Depends on where you want to live.

I would venture to say for the most part sub 100K condos are in tougher areas and not always be easy to resale.

Depends on how long you want to stay in it.  Normally I want to hear 3-5 years.  That's thinking 3-4% appreciation a year, although it's been higher than that in many areas the past 2-3 years, but tough to know if we can count on that forever.

Remember you have HOA dues as well as just purchase price.  Probably least expensive on 1 bedroom is something like $150-$175/month, but some can be double that.

Kenneth McKeown · Answer

Personally not a fan of condos as they will often times be cheaper with a high HOA. The whole intent of investing is to increase my wealth and financial portfolio... not someone elses. A small HOA SFH isn't a big deal but it's ridiculous to go buy a $100-150k condo when the HOA is hundreds of dollars. *my personal opinion*