Opinion on the Vickery neighborhood in Dallas?
New to Real Estate · San Jose, CA · Member since 2022 · 67 posts · 23 votes
Hi BP Family,
I am an out-of-state investor and own a 2bd/2ba apartment in the Vickery neighborhood (also known as Vickery Meadows) of Northeast Dallas. It historically is a rough area with high crime but seems like the are has been improving over the years. There has been a few Starbucks and even an REI that have opened in the area. While there is still some crime in the area, some houses are going on market and being mostly bought by investors. I was wondering if anyone on this forum, either investors or local residents in Dallas, that is familiar with the neighborhood can give me an honest opinion on what they think the future of that neighborhood is? Is it a neighborhood that you think will continue to improve or get safer? do you think properties in the area will appreciate? I have done a lot of research on this online but also would like the opinion of someone familiar with the area. I currently have a fantastic tenant in place that has never been late on a payment. Any feedback would be much appreciated! Thank you all!
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See agentsOriginally wrote this for Vickery place - in Vickery Meadow I think you're generally in a good spot and close to some great neighborhoods and as you mentioned all that development is a solid sign.
My only red flag would be that it's an apartment, but if you're comfortable with it you're in a great spot for future growth.
Very rough and I would argue that it does not seem to be getting better. Typically I would say more investors is not a good thing for any neighborhood. I really try to stay open to all kinds of situations and ideas and consider myself very deal oriented. However, even if you get the steal of the century I don't suggest investing in that area and especially with condos for a number of reasons.
#1 HOA dues typically kill your returns and you're paying those even when the unit is empty between tenants. HOA dues seems to have risen significantly at many places this year, sometimes doubling or near double.
#2 From what I've seen there has been more turnover in that area vs many others...and that is over many many years.
#3 With many of the condos, easy to buy, but not easy to sell. All kinds of issues selling. Lenders don't like when one owner gets to many (normally more than 20%), there are too many investors (+51% investors), too much deferred maintenance on the unit exteriors, which is very common in this area (and maybe with most of the lower priced condos in DFW and maybe even nationwide.) The other issue we have seen with lenders is lawsuits at the property level, some still leftover from the freeze 3 years ago. Lenders tend not to want to lend when there are active lawsuits, either the property suing the insurance company or individuals suing the HOA.
#5 Dallas is several hundred police officers short, and has been for many years. Typically they are not coming to save you. Regularly have 24hour or more backlog of calls, and pushing people to just report the crime online once the emergency is over vs sending an officer or investigator. It's a problem not only for Vickery Meadows, but all over City of Dallas. I'm sure there are tougher places around the country, but for us this is one of the toughest. Can depend somewhat on the micro area though. Village Apts is this huge place on the south side of VM and that seems better. 1000s of apartments there. They've put in some hip restaurants there, but they don't seem to be doing well and just lost their celebrity chef that oversaw everything including his signature place. What made me really cautious in that area is when two state troopers doing a stakeout where nearly jumped and maybe got close to being killed on the very NE part of that area. That's been a few years, before covid, but a good area to pay attention to your surroundings.
#6 One of the few areas of town where a regular business will have buzzer locks on the doors, and only allow lets say 3 people at a time in the business. There's a couple of places I visit and while they're afraid sometimes to buzz you in, that causes me to be afraid to stand outside. So I sit in my car, call the business, ask them to be on the lookout to buzz me in, so I'm not a sitting duck outside their business.
#7 While there are some newer apartments, there is also a lot of old and run down places too, and a lot of older condos, that might have even been apartments at one time and converted. Often it is tough to tell one from another.
#8 One of the biggest issues I see for investors is the area is almost all rental and almost all apartments, although with a few condos mixed in. I think it is super tough for individual investors to compete with apartment owners when times get tough. They can offer all kinds of special that bury investors like 1month free rent or even 2 months free or $199 move in special or things like that.
Vickery Place is a completely different neighborhood and not really close. Totally different price range and demographic.
I'm glad your doing well there. Sounds like you have the unicorn. If you could convert your tenant to owner occupant, maybe with owner financing, that might be a way to liquidate. Best wishes and good luck.
@Bruce Lynn Thank you so much for your detailed reply and for all the information! Unfortunately, since I live out of state I bought the condo without visiting the neighborhood. This was my first real estate investment ever and it looked great on paper (negotiated seller finance with 5% interest only payments for the first 5 years), I am learning that I may have jumped the gun on this deal. Luckily, because of the way it is structured, I am able to cash flow positively. I guess I got lucky again with my tenant as they are fantastic, but it did take a while to find a good one and I screened MANY. I bought the condo about 9 months ago but I have been thinking of selling it and moving on to a better property in a better area. I know generally it is frowned upon by investors to buy a place that is tenant occupied so that might be a limiting factor. Thanks again for your reply!